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For years, when considering new products, marketers at Celestial Seasonings asked themselves, "What would Stacy think?" Stacy was a fictional character representing 25-50-year-old, educated, upper-income women who rarely watched television but did a lot of reading. "Stacy" represented Celestial's primary
Marginal Propensity
The ratio of the change in an economic variable (such as consumption or saving) in response to a change in another variable (such as income).
Disposable Income
Income remaining for a person to spend or save after all taxes have been paid.
Disposable Income
The amount of money that households have available for spending and saving after income taxes have been taken out.
Consumption Spending
Expenditures by households on goods and services, excluding purchases of new housing, and a major component of GDP.
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