If the Marginal Propensity to Save Is 0

question 94

Multiple Choice

If the marginal propensity to save is 0.1,the multiplier will be

• A)0)1.
• B)1)
• C)5)
• D)10.

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Definitions:

Cash Basis

An accounting method where transactions are recorded when cash is received or paid, without regard to when the transactions occurred.

Selling and Administrative Expense

Costs incurred by a company from its selling activities and the management of the overall company, excluding production costs.

Cash Basis

A bookkeeping approach that only recognizes earnings and outgoings at the time cash is exchanged.

Financing Activities

Activities that result in changes in the size and composition of the equity capital or borrowings of a company.