If an Increase in Autonomous Consumption Spending of $10 Million

question 88

Multiple Choice

If an increase in autonomous consumption spending of $10 million results in a $50 million increase in equilibrium real GDP,then

• A)the MPC is 0.5.
• B)the MPC is 0.75.
• C)the MPC is 0.8.
• D)the MPC is 0.9.

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Definitions:

Petty Cash Voucher

A document used to log and authorize the use of petty cash funds for small, incidental expenses.

Cash Short

A situation where the recorded cash amount is less than the expected amount, often due to errors or theft.

Petty Cash

A small fund kept on hand used for minor, miscellaneous expenses of a business.