-Refer to Exhibit 10-9

question 129

Multiple Choice

-Refer to Exhibit 10-9.What is the value of the marginal propensity to save (MPS) that would correctly fill in blank (A) and the multiplier that would correctly fill in blank (B) ?

• A) 0.20; 5
• B) 0.08; 8
• C) 0.08; 12.5
• D) 0.05; 0.95

---

Definitions:

Journal

An initial record in which financial transactions are entered in chronological order before posting to ledgers.

Debit

An entry recorded on the left side of a double-entry bookkeeping system that increases an asset or expense account, or decreases a liability, equity, or revenue account.

Credit

An accounting entry that either decreases assets or increases liabilities and equity on a company's balance sheet.

Salaries Expense

The total amount of salary payments made to employees, recognized as an expense in the accounting period in which the employees' services are rendered.