Consider the Following Information for a Family

question 11

Multiple Choice

Consider the following information for a family. The income for the family is $58,000; if the MPS is 0.25, and the income for the family decreases by $15,000, then the decrease in consumption will be:

• A) $3,750.
• B) $10,500.
• C) $11,250.
• D) $1,500.

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Definitions:

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade and finance operations.

Foreign Subsidiary

A company that is owned or controlled by another company, located in a country different from the parent company.

Sales

The total revenue earned from goods sold or services provided over a certain period of time.

Exchange Rates

The rate at which one currency can be exchanged for another, influencing international trade and economics.