The Marginal Propensity to Consume Measures the Average Amount of Wealth

question 83

True/False

The marginal propensity to consume measures the average amount of wealth that a consumer spends in a given period of time.

---

Definitions:

Double-Declining-Balance Method

A method of accelerated depreciation which doubles the normal depreciation rate, reducing the value of an asset more quickly.

Net Income

The total profit of a company after all expenses, including taxes and interest, have been deducted from total revenue.

Straight-Line Depreciation

A method of allocating the cost of a tangible asset over its useful life in a linear fashion.

Asset Impairments

The reduction in the recoverable value of a fixed asset or goodwill below its book value, reflected in the financial statements as an expense.