If the MPS =

question 14

Multiple Choice

If the MPS = .25, and investment falls from $100 to $75, real GDP will decrease by:

• A) $75.
• B) $100.
• C) $125.
• D) $150.

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Definitions:

Direct

The process or manner of communication or transaction that happens without any intermediaries.

Channel Conflict

A situation where channels in a distribution chain are in competition with each other or interfere, leading to reduced efficiency or sales.

Vertical

An industry or market in which businesses provide products or services specific to a particular niche, focusing on a tightly defined area of operation.

Conventional

Adhering to established practices or methods; traditional.