If the Spending Multiplier Is 8, Then the Marginal Propensity

question 159

True/False

If the spending multiplier is 8, then the marginal propensity to consume must be 7/8.

---

Definitions:

Ethical Standards

Principles that guide behavior in terms of right and wrong, often serving as a foundation for determining acceptable conduct within a society or profession.

Sales Force Performance

The efficacy and efficiency of a company's sales team in achieving its sales targets and overall business objectives.

Qualifying

Identifying potential customers within the firm’s target market who have a desire for the product, the authority to purchase it, and the resources to pay for it.

Promotional Salesperson

An individual who focuses on creating immediate product interest, offering special deals or incentives as part of a short-term sales strategy.