If the Income Multiplier Is 2,the Value of the Marginal

question 12

Multiple Choice

If the income multiplier is 2,the value of the marginal propensity to consume is

• A)0.2.
• B)0.5.
• C)0.75.
• D)1.

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Definitions:

Physical Inventory

An actual count of all merchandise or stock on hand at a specific time.

Retained Earnings

Accumulated net income after dividends that is reinvested into the company rather than distributed to shareholders.

Income Statement

An Income Statement is a financial document that shows a company's revenue, expenses, and profits or losses over a specific period.

Excess Inventory

A situation where a company holds a larger amount of inventory than it can sell or use within a reasonable period, often leading to increased costs.