If the MPC Is 0

question 66

Multiple Choice

If the MPC is 0.8, what must the spending multiplier be?

• A) 5
• B) 2
• C) 1.2
• D) 1.8

---

Definitions:

Purchasing Power

The ability of a consumer or a group of consumers to buy goods and services with their income at given prices.

Customized Products

Goods that are tailored or modified to meet the specific wants or needs of individual customers or clients.

Cost-Effective

Describes a process, method, or system that provides the best possible outcome or value for the money spent.

Potential Consumers

Individuals or groups who are likely to buy a product or service but have not yet made the purchase.