If the Consumption Function Is of the Form [C =

question 92

Multiple Choice

If the consumption function is of the form [C = 80 + 0.4Y], the MPS equals

• A) -0.6.
• B) -0.4.
• C) 0.4.
• D) 0.6.

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Definitions:

Penalties

Sanctions or punishments imposed for breaking a law, rule, or contract, which may include fines, imprisonment, or other forms of retribution.

Accountant-client Relationship

A professional connection between an accountant and their client, based on trust and confidentiality, to manage financial records and tax matters.

Negligence

The failure to exercise the care that a reasonably prudent person would exercise in similar circumstances, leading to harm or damage.

Professional Misconduct

Inappropriate or unethical behavior by a professional in their line of work, violating professional ethics or standards.