All of the Following Items Are a Flow Variable EXCEPT

question 46

Multiple Choice

All of the following items are a flow variable EXCEPT _____.

• A) a savings account balance
• B) consumption expenditure
• C) government purchases
• D) gross private investment

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Definitions:

Penetration Pricing

A pricing strategy aimed at entering a new market by setting a low price initially to attract customers and gain market share.

Escalator Clause

A section in a contract that provides for price increases if certain, specified conditions occur.

Loss-leader Pricing

A pricing strategy where a product is sold at a loss to attract customers, with the expectation they will make additional purchases of other items at regular prices.

Elastic Demand

Demand for which a given percentage change in price results in an even larger percentage change in quantity demanded.