Answer the Question on the Basis of the Following Table

question 54

Multiple Choice

Answer the question on the basis of the following table that illustrates the multiplier process. Refer to the given table.The marginal propensity to save is:

• A) .5.
• B) .25.
• C) .2.
• D) .1.

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Definitions:

Dividends

Distributions of earnings allocated by a company to its shareholders, often in the form of cash payments or additional shares.

Organization Expense

Costs associated with forming a corporation or business entity, such as legal fees, filing fees, and promotional expenses.

Common Stock

A type of equity security that represents ownership in a corporation, granting holders voting rights and a share in the company's profits through dividends.

Paid-in Capital

Funds received by a company in exchange for shares of its stock, representing the capital contributed by shareholders beyond the par value of the shares.