Within the Keynesian Model, If the Marginal Propensity to Consume

question 25

Multiple Choice

Within the Keynesian model, if the marginal propensity to consume is 0.8, which of the following is true?

• A) When consumption increases by $5, income increases by $1.
• B) When consumption increases by $1, saving increases by $5.
• C) When investment increases by $1, income increases by $5.
• D) When investment increases by $1, saving increases by $5.

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Definitions:

Select Audience

A specific group of people chosen as the target for a particular message, advertisement, or campaign, based on certain demographic, psychographic, or behavioral characteristics.

Narrowcasting

The dissemination of information or media content targeted to a specific, narrowly defined audience.

Radio Station

A service that broadcasts audio content to the public via radio waves, including music, news, and other forms of entertainment or information.

Sales Promotion

A marketing strategy involving temporary incentives to encourage the purchase or sale of a product or service.