Consider a Simple Macro Model with a Constant Price Level

question 72

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.If the marginal propensity to spend in such a model is one,the simple multiplier is

• A)zero.
• B)a positive number between zero and one.
• C)one.
• D)a positive number greater than one but less than infinity.
• E)infinitely large.

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Definitions:

New Customers

Individuals or organizations that have not previously purchased from a business, representing an opportunity for growth and expansion.

Unrelated Products

Products that have no significant connection or complementarity in use, production, or marketing to each other.

Existing Goods

Products that have already been manufactured and are available for sale or distribution.

Revenue Analysis

The process of examining revenue data to understand the financial performance of a business and to identify trends and opportunities for improvement.