If the Multiplier Is 50, Then the Marginal Propensity to Consume

question 407

Multiple Choice

If the multiplier is 50, then the marginal propensity to consume (MPC) is

• A) 0.98.
• B) 0.05.
• C) 0.5.
• D) 9.

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Definitions:

Australian Parent Company

A company based in Australia that holds controlling interest in one or more subsidiary companies.

Consolidating Financial Statements

The process of combining the financial statements of a parent company with those of its subsidiaries to present as one set of financial statements.

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