A Payment Packet

question 13

Multiple Choice

A payment packet:

• A)reports the arrival of items purchased.
• B)is sent by the purchasing department to the vendor selling the item.
• C)identifies the need for merchandise and begins the purchasing process.
• D)includes the invoice, receiving report and purchase order.

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Definitions:

Simple Multiplier

The ratio used to estimate the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.

Marginal Propensity

The rate at which an individual, household, or economy is likely to consume (or save) with respect to an incremental increase in income.

Multiplier

An economic factor that quantifies the impact of increased spending in the economy, leading to a proportional increase in income and consumption.

Marginal Propensity

The proportion of an additional unit of income that is spent on consumption; a key concept in Keynesian economics related to how income changes affect spending.