In General,the Marginal Propensity to Spend Is the Change in Total

question 69

Multiple Choice

In general,the marginal propensity to spend is the change in total desired expenditure induced by a change in ________ whereas the marginal propensity to consume is the change in desired consumption expenditure induced by a change in ________.In the case of the simplest macro model with no government and no international trade,however,the marginal propensity to spend is ________ the marginal propensity to consume.

• A)national income; disposable income; greater than
• B)national income; disposable income; equal to
• C)disposable income; national income; equal to
• D)disposable income; national income; greater than
• E)national income; disposable income; smaller than

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Definitions:

Reinvested

The act of using profits or earnings to purchase additional assets or to fund operations, aiming for future growth or income.

Payback Period

The time it takes for an investment to generate an amount of income or cash equivalent to the cost of the investment.

Salvage Value

The estimated resale value of an asset at the end of its useful life.

Internal Rate

This term is ambiguous without further context. It might refer to Internal Rate of Return (IRR), which is a method of calculating an investment's rate of return.