If the Marginal Propensity to Consume Is 0

question 31

Multiple Choice

If the marginal propensity to consume is 0.2, the value of the multiplier is:

• A) 1.25.
• B) 2.
• C) 0.8.
• D) 5.

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Definitions:

Business Plan

A detailed document outlining the strategy, objectives, and financial projections of a business, used for planning and seeking investment.

Competition

The rivalry among businesses for consumers’ dollars.