In the Simple Aggregate Expenditure Model Where All Components of Aggregate

question 88

Multiple Choice

In the simple aggregate expenditure model where all components of aggregate expenditure are autonomous except consumption, what is the value of the multiplier if the marginal propensity to consume is 0.75?

• A) 1
• B) 4
• C) 5
• D) infinity

Understand the role and process of positioning in marketing, including how it differs from segmentation.

Recognize the importance of ethics in targeting specific market segments.

Identify the challenges and criteria for effective market segmentation and targeting.

Understand how demographic variables (age, gender, income) are used in market segmentation.

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Definitions:

Equity Mutual Funds

Mutual funds that primarily invest in stocks with the aim of providing capital growth or income to its investors.

Incentive Bonus

An additional payment or reward given to employees as a motivation for meeting or exceeding specified goals or objectives.

Expense Ratio

A measure of what it costs an investment company to operate a mutual fund, expressed as a percentage of the fund's assets.

Gross Return

The overall yield from an investment prior to subtracting any charges or costs.