-Refer to the Above Figure

question 84

Multiple Choice

-Refer to the above figure. If the MPC is unchanged and level of autonomous consumption increases, what occurs?

• A) Line EBD will shift up.
• B) Line ABC will drop down.
• C) Line ABC shifts up.
• D) Line EBD rotates and becomes steeper.

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Definitions:

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, although the overall value of the shares remains the same.

Stockholders' Equity

The residual interest in the assets of the entity after deducting liabilities, representing ownership equity spread among shareholders.

Donated Land

Land that has been given to an organization as a gift, usually recognized at its fair market value on the date of donation.