Use the Table Below to Find the Marginal Propensity to Consume

question 165

Multiple Choice

Use the table below to find the marginal propensity to consume.

• A) the marginal propensity to consume cannot be determined from the information given
• B) 0.4
• C) 0.5
• D) 0.6
• E) 0.8

---

Definitions:

Cost-to-Cost Method

A method used in accounting for long-term contracts where revenue is recognized based on the percentage of project completion, estimated by comparing the costs incurred to the total expected costs.

Construction Contracts

Agreements between parties for executing construction projects, detailing scope, budget, and timeline.

Construction in Progress

An accounting term for the financial balance of ongoing, unfinished construction projects, which is a non-depreciable asset on the balance sheet until the project is completed.

Partial Billings

Invoices sent to clients or customers for a portion of the work completed or products delivered, commonly used in long-term projects.