If Autonomous Investment Spending Falls by $1,000 and the Marginal

question 223

Multiple Choice

If autonomous investment spending falls by $1,000 and the marginal propensity to consume is 0.75, the total effect on the economy is a decrease of _____ in income or output.

• A) $750
• B) $1,000
• C) $4,000
• D) $7,500

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Definitions:

Workplace Cultures

The environment and characteristic ethos of a workplace, defined by its values, traditions, beliefs, behaviors, and attitudes.

Cultural Integration

The process of merging and adapting different cultural beliefs, values, and practices within an organization or society.

Conglomerate

A large corporation formed by the merging of diverse firms across different industries, operating under one corporate group.

Tata

A multinational conglomerate based in India, with interests in sectors ranging from steel, automobiles, and technology to telecommunications, among others.