If the Level of Consumption Is $120 Billion and Disposable

question 449

Multiple Choice

If the level of consumption is $120 billion and disposable income is $150 billion, then the

• A) APC = 0.75 and saving is positive.
• B) APC = 0.8 and saving is negative.
• C) APC = 0.8 and saving is positive.
• D) APC = 0.75 and saving is negative.

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Definitions:

Cash Flows

The movement of money into and out of a business, representing earnings and expenses.

Project A

A specified venture or task that has been named 'Project A' for identification purposes.

Interest-Only Loan

A type of loan where the borrower is required to pay only the interest on the principal balance for a set period, with the principal balance unchanged.

Principle Amount

The principal amount is the initial size of a loan or an investment, not including profits or interest.