If the Marginal Propensity to Consume Is 0

question 64

Multiple Choice

If the marginal propensity to consume is 0.8, then the multiplier is

• A) 0.2.
• B) 1.2
• C) 1.25
• D) 5.0.

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Definitions:

California Raisins

A marketing brand created for the promotion of raisins grown in California, notably featuring an animated musical group called "The California Raisins."

R&B Musical Group

A group of musicians that performs Rhythm and Blues, a genre of music known for its soulful melodies and strong rhythms.

B2B Markets

Encompasses the transaction of goods and services between businesses rather than between businesses and consumers.

Personal Selling

A promotional strategy where sales representatives interact directly with potential customers to explain product benefits and persuade them to make a purchase.