If the Multiplier for a Change in Autonomous Expenditure Is

question 65

Multiple Choice

If the multiplier for a change in autonomous expenditure is 10 and there are no income taxes or imports, then the MPC is

• A) 0.9.
• B) 0.1.
• C) 1.0.
• D) 9.0.

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Definitions:

Interest Payments

The payment that a borrower makes to a lender for the use of money, usually expressed as an annual percentage of the loan amount.

Debt Management Ratios

Financial metrics used to assess a company's ability to manage and pay off its debt obligations.

Debt Financing

Involves borrowing funds from external sources to finance business operations or expand capital, typically through loans or issuing bonds.

Equity Financing

Equity financing is the process of raising capital through the sale of shares in an entity, giving investors ownership interests in the company.