If the Marginal Propensity to Consume (MPC)is 0

question 170

Multiple Choice

If the marginal propensity to consume (MPC) is 0.9, the spending multiplier will be

• A)10.
• B)1.11.
• C)0.9.
• D)0.1.

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Definitions:

Price-Fixing

An illegal agreement between parties to sell a product at a set price, limiting competition and manipulating the market.

Monopoly Structure

A market structure characterized by a single seller offering a unique product or service with no close substitutes and significant barriers to entry for potential rivals.

Antitrust Law

Legislation enacted to prevent monopolies and promote competition, ensuring fair practices in the marketplace.

Market Shares

The portion of a market controlled by a particular company or product, often expressed as a percentage of total sales in the industry.