If the MPC = 0

question 42

Multiple Choice

If the MPC = 0.9, then ignoring any multiplier effect, an increase in disposable income causes consumption expenditure to

• A) rise by more than the full increase in income.
• B) rise by the full increase in income.
• C) fall, as increases in income will increase saving.
• D) rise by less than the full increase in income.

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Definitions:

Sales Call

A communication, either via telephone or face-to-face, initiated by a salesperson towards a potential or existing customer with the objective of making a sale.

Logical Sequence

An arrangement of ideas or actions in a coherent order that follows clear and rational progression.

Sales Presentation

A structured dialogue or demonstration aimed at persuading a potential customer to purchase a product or service.

Buying Signal

Anything that prospects say or do indicating they are ready to buy.