Which of the Following Formulas Is Used to Find the Cumulative

question 101

Multiple Choice

Which of the following formulas is used to find the cumulative increase in AD from a particular fiscal stimulus?

• A)Fiscal stimulus ÷ the multiplier.
• B)Fiscal stimulus ÷ MPC.
• C)The multiplier × fiscal stimulus.
• D)MPC × fiscal stimulus.

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Definitions:

Loyalty Selling

A sales strategy focused on creating and maintaining long-term relationships with customers to encourage repeat business.

Personal Relationship

A connection between individuals based on emotional or social bonds, often characterized by mutual respect, understanding, and communication.

Personal Selling

A direct marketing approach where individual salespeople reach out to potential customers through face-to-face meetings, calls, or personalized messages.

Trade Sales Promotion

Marketing activities and incentives aimed at intermediaries such as wholesalers and retailers to encourage the stocking and promotion of a company’s products.