If the Multiplier Is 6,then the MPC Is

question 98

Multiple Choice

If the multiplier is 6,then the MPC is

• A)0.16.
• B)0.83.
• C)0.71.
• D)0.86.

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Definitions:

Investing Activities

Financial transactions related to the purchase and sale of long-term assets and investments in other firms.

Operating Activities

Activities that relate directly to the operation of the business, including production, sales, and other functions that generate revenue and expenses.

Investments

Investments are assets or items acquired with the goal of generating income or appreciation, including stocks, bonds, real estate, or other vehicles of value.

Direct Method

A cash flow statement preparation method that discloses major classes of gross cash receipts and payments, as opposed to the indirect method which adjusts net income for non-cash transactions.