If a $1,000 Increase in Income Leads to a $750

question 262

Multiple Choice

If a $1,000 increase in income leads to a $750 increase in consumption expenditures, then the marginal propensity to consume is

• A)0.75 and the multiplier is 1 1/3.
• B)0.75 and the multiplier is 4.
• C)0.25 and the multiplier is 1 1/3.
• D)0.25 and the multiplier is 4.

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Definitions:

Distinctive Competition

Is the unique competitive edge or positioning that sets an entity apart from its competitors in the marketplace.

Unique

Being the only one of its kind; without equal or equivalent in characteristic or importance.

Starbucks Coffee

An international coffee company and coffeehouse chain known for its specialty coffee drinks.

Geographic

Relating to geography, the study of the physical features of the earth and its atmosphere, and of human activity as it affects and is affected by these.