If Consumers Spend 80 Cents Out of Every Extra Dollar

question 111

Multiple Choice

If consumers spend 80 cents out of every extra dollar received,the:

• A) MPS is 0.80.
• B) MPC is 0.20.
• C) Multiplier is 20.
• D) Multiplier is 5.

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Definitions:

Limited Liability Company

An organizational model blending the direct taxation advantage of partnerships or sole proprietorships with the restricted liability characteristic of corporations.

Limited Partnership

A limited partnership is a form of partnership consisting of at least one general partner, who manages the business and is personally liable for partnership debts, and one or more limited partners, who are liable only to the extent of their investments.

Policies

Formal guidelines or rules established by organizations to govern decision-making and establish boundaries for behavior.

Procedures

refer to established ways of doing things; these are step-by-step instructions or guidelines designed to achieve specific tasks or outcomes.