Which of the Following Statements Do You Think Could Possibly

question 6

Multiple Choice

Which of the following statements do you think could possibly be true?

• A) Last year, 60 of the 80 residents in a neighborhood subscribed to the local newspaper, and this year, it is 40 residents who subscribe. This is a 50 percent decrease.
• B) A company's annual profits increased by 110 percent over the last decade.
• C) A teacher brought 40 calculators to class, and 21 percent of them had dead batteries.
• D) The number of violent crimes in the city decreased by 112.46 percent last year.
• E) None of the above is true.

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Definitions:

Marginal Propensity

The proportion of an additional unit of income that is used for consumption; more specifically referred to as the marginal propensity to consume.

Net Wealth

The value of assets minus liabilities.

Consumption Spending

The total value of all goods and services consumed by households within a certain period.

Inflation Rate

The percentage change in the price level of goods and services in an economy over a period of time, often indicating the decrease in purchasing power of a currency.