-Refer to Exhibit 10-9

question 129

Multiple Choice

-Refer to Exhibit 10-9.What is the value of the marginal propensity to save (MPS) that would correctly fill in blank (A) and the multiplier that would correctly fill in blank (B) ?

• A) 0.20; 5
• B) 0.08; 8
• C) 0.08; 12.5
• D) 0.05; 0.95

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Definitions:

Stockholders' Equity

The owners' residual interest in the assets of a corporation, after deducting its liabilities.

Date of Record

A specific date set by a corporation on which the shareholders of record are identified as entitled to receive dividends or other distributions.

Stockholders' Equity

The ownership interest of shareholders in the assets of a corporation, calculated as total assets minus liabilities.

Paid-In Capital

Paid-in capital is the amount of money that shareholders have directly invested in a company by purchasing shares during the initial offering or through secondary market transactions.