If the Marginal Propensity to Consume (MPC)is 0

question 184

Multiple Choice

If the marginal propensity to consume (MPC) is 0.60, what is the expenditure multiplier?

• A)0.4.
• B)0.6.
• C)2.5.
• D)6.0.

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Definitions:

Decentralized Decision

A decision-making process distributed among various levels of an organization, allowing for quicker responses and employee empowerment.

Corporate Vision

A strategic declaration of a company's long-term objectives and desired future state, guiding its direction and decision-making.

Sustainable Competitive Advantage

A unique advantage that allows a business to achieve superior margins and returns over its competition for a prolonged period.

Native Context

The original environment or setting in which something exists or occurs, often used in computing and linguistics.