If the MPC = 0

question 17

Multiple Choice

If the MPC = 0.8, what is the government purchases multiplier?

• A) 0.20
• B) 0.50
• C) 2
• D) 5

---

Definitions:

Internal Environment

Refers to the conditions, entities, events, and factors within an organization that influence its activities and choices, including its employees, management, corporate culture, and internal processes.

External Environment

All external factors outside of an organization that affect its operations, including market trends, economic conditions, and regulatory landscape.

Market-oriented

An approach or strategy that prioritizes understanding and meeting the desires and needs of customers within a market.

Market Information

Data related to consumers, competitors, and market trends that companies analyze to make informed business decisions.