If Consumption Is $30,000 When Income Is $35,000, and Consumption

question 136

Multiple Choice

If consumption is $30,000 when income is $35,000, and consumption increases to $36,000 when income increases to $43,000, the MPC is

• A) 0.65.
• B) 0.75.
• C) 0.80.
• D) 0.95.

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Definitions:

Capital

Financial assets or the financial value of assets, such as cash and goods, working to produce more wealth or used to fund operations and investments.

External Investors

Individuals or entities that provide capital to a company or project but are not part of the company's internal structure.

Financial Reporting

Generating documents that expose the economic health of an organization to its leadership, stakeholders, and government agencies.

Rules-Based

A regulatory or decision-making approach that relies strictly on written rules, standards, and procedures.