Exhibit 9-9 -The Larger the Marginal Propensity to Save,other Things Constant

question 31

Multiple Choice

Exhibit 9-9
-The larger the marginal propensity to save,other things constant,

• A)the larger the marginal propensity to consume
• B)the smaller the multiplier
• C)the larger the multiplier
• D)the steeper the consumption function
• E)the flatter the saving function

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Definitions:

Permanent Accounts

Accounts that carry their ending balances from one accounting period to the next, including assets, liabilities, and equity accounts.

Adjusting Entries

Adjusting entries are journal entries made at the end of an accounting period to update the accounts and ensure that the financial statements reflect accurate and fair amounts.

Temporary Accounts

Accounts that are closed to the owner's equity account at the end of the accounting period.

Closing

The process of finalizing accounts at the end of an accounting period, leading to the preparation of financial statements.