The Following Partial Data Relates to a National Economy (All

question 112

Multiple Choice

The following partial data relates to a national economy (all figures in $billions) :

-Refer to the above table to answer this question.What is the value of the marginal propensity to expend?

• A)0
• B)0.4
• C)0.6
• D)1.67
• E)2.5

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Definitions:

Temporary Accounts

Accounts in the general ledger that are closed at the end of the accounting period, transferring their balances to permanent accounts.

Chart of Accounts

A systematic listing of all accounts used in the ledger of an organization, categorized by assets, liabilities, equity, revenue, and expenses.

Re-sort List

The action of organizing or rearranging items in a list according to a different criterion or sequence.

Fixed Asset

Long-term tangible property that a company owns and uses in its operations to generate income, such as buildings, machinery, and equipment.