Given the Equations for C,I,G,and NX Below,what Is the Marginal

question 30

Multiple Choice

Given the equations for C,I,G,and NX below,what is the marginal propensity to consume? C = 1,000 + 0.8Y
I = 1,500
G =1,250
NX = 100

• A)0.2
• B)0.8
• C)1.8
• D)10

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Definitions:

Net Method

The net method accounts for purchase discounts by recording the initial purchase at net of the discount, encouraging prompt payment by recognizing discounts not taken as interest expense.

Periodic Inventory Method

An accounting method that updates inventory levels and cost of goods sold at the end of a financial period rather than after each sale.

Voucher Payment

A method of payment where documentation is used to authorize and record a payment transaction.

Discount Period

The time frame in which a payment made towards a purchase is eligible for a discount, typically to encourage early payments.