If the Marginal Propensity to Consume Is 3/4,the Simple Multiplier

question 57

Multiple Choice

If the marginal propensity to consume is 3/4,the simple multiplier is

• A)3
• B)7
• C)4
• D)25
• E)3/10

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Definitions:

Benchmark Comparison

The process of comparing business metrics or performance against a standard or set of best practices to evaluate relative performance.

Profitability Analysis

Evaluation of a company's ability to generate earnings compared to its expenses over a specific period.

Cross-Sectional Analysis

An analytical method that involves comparing different data points at a specific point in time across a sample or population.

Common Size Statements' Analysis

A method of financial analysis that expresses each line item as a percentage of a standard value from the financial statements to allow for comparison.