The Marginal Propensity to Consume Is Always Greater Than Unity

question 2

True/False

The marginal propensity to consume is always greater than unity.

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Definitions:

Advertising Expenses

Costs incurred in promoting a product, service, or company through various media.

Factory Workers

Labor force employed in a factory, responsible for direct and indirect manufacturing tasks.

Manufacturing Equipment

Machinery and tools that are used in the process of producing goods.

Manufacturing Overhead

The indirect costs associated with manufacturing that are not directly tied to the production of specific goods, such as maintenance, utilities, and salaries of supervisors.