If the Marginal Propensity to Consume Is

question 150

Multiple Choice

If the marginal propensity to consume is .9 in a private closed economy,a $20 billion decline in investment spending will decrease:

• A) GDP by $20 billion.
• B) GDP by $100 billion.
• C) saving by $20.
• D) consumption by $200 billion.

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Definitions:

Private Placement Exemption

Private Placement Exemption refers to a securities offering exempt from registration with regulatory bodies, allowing companies to sell shares directly to qualified investors without a public offering.

SEC

The Securities and Exchange Commission, a federal agency responsible for regulating the securities industry, enforcing federal securities laws, and ensuring securities market integrity.

Unlimited Number Of Securities

Pertains to a situation where a company is authorized to issue as many shares of stock as it desires, with no set maximum limit defined in its charter.

Profits

Profits represent the financial benefit that is realized when the amount of revenue gained from a business activity exceeds the expenses, costs, and taxes involved in sustaining the activity.