Given the Equations for C, I, G, and NX Below

question 97

Multiple Choice

Given the equations for C, I, G, and NX below, what is the marginal propensity to save? C = 1,000 + 0.8Y
I = 1,500
G = 1,250
NX = 100

• A)0.1
• B)0.2
• C)0.8
• D)1.8
• E)10

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Definitions:

Departmental Gross Profit

The difference between sales and the cost of goods sold for a specific department, highlighting its profitability.

Revenue

An amount earned by performing services for customers or selling goods to customers; it can be in the form of cash or accounts receivable. A subdivision of owner’s equity: As revenue increases, owner’s equity increases.

Breakfast Department

A specific business unit within a hospitality organization that is responsible for managing and operating the breakfast service.

Cost Center

is a segment of a business that does not directly generate revenue but incurs costs, like a human resources department.