If the Simple Multiplier Is 10,the Marginal Propensity to Save

question 72

Multiple Choice

If the simple multiplier is 10,the marginal propensity to save is

• A)1/10
• B)9/10
• C)1/9
• D)10/9
• E)9

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Definitions:

Journal

A record where all financial transactions are initially noted before they are posted to individual accounts in the ledger.

Revenues

The total amount of money received by a company for goods sold or services provided during a specific period.

Net Income

The remaining profit of a company after it has paid all operational expenses and taxes from its revenue.

Credits

Entries on the right side of a double-entry bookkeeping system that increase liabilities, equity, or revenue accounts, or decrease asset or expense accounts.