If Y = $200 Billion,c = 0

question 56

Multiple Choice

If Y = $200 billion,c = 0.75,autonomous consumption = $10 billion,and T = $20 billion,induced saving is

• A)$25 billion.
• B)$50 billion.
• C)$75 billion.
• D)$150 billion.

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Definitions:

Debt-To-Equity Ratio

A measure revealing the ratio of debt to shareholders' equity in the financing structure of a company's assets.

Balance Sheet

A financial statement that provides a snapshot of a company's financial position at a specific point in time, detailing assets, liabilities, and equity.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, ultimately providing information on its profit or loss.

Debt-To-Equity Ratio

A financial ratio indicating the relative proportion of a company's assets financed by debt compared to shareholder equity.