If the Marginal Propensity to Consume (MPC) Is 0

question 78

Multiple Choice

If the marginal propensity to consume (MPC) is 0.80, and if policy makers wish to increase real GDP $200 billion, then by how much would they have to change taxes?

• A) − $240 million.
• B) − $200 million.
• C) − $180 million.
• D) − $50 million.

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Definitions:

Integrated Supply Chains

Refers to a closely connected and synchronized chain of suppliers, manufacturers, and retailers who work together seamlessly to reduce costs, improve efficiency, and deliver products to consumers.

Sales Promotion Role

The activities or strategies aimed at boosting sales and strengthening market presence temporarily through incentives such as discounts, contests, or free samples.

Consumer Markets

Markets comprising individuals and households that purchase goods and services for personal consumption.

IMC Program

Integrated Marketing Communications Program, an approach to creating a unified and seamless brand messaging experience across all channels and communication methods.