If 100 Percent of Any Change in Income Is Spent

question 54

Multiple Choice

If 100 percent of any change in income is spent, the multiplier will be

• A) equal to the MPC.
• B) 1.
• C) zero.
• D) infinitely large.

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Definitions:

Business Plan

Written document that provides an orderly statement of a company’s goals, methods, and standards.

Mission Statement

A formal summary of the aims and values of a company, organization, or individual.

Executive Summary

One- to two-page snapshot of what the overall business plan explains in detail.

Business Incubator

Local programs designed to provide low-cost shared business facilities to small start-up ventures.