In the Consumption Function: C = a + B(Y -

question 2

Multiple Choice

In the consumption function: C = a + b(Y - NT) , the term b represents the

• A)intercept of the consumption function
• B)level of taxation
• C)level of net taxation
• D)level of income
• E)marginal propensity to consume

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Definitions:

Open Market

A system where goods, services, and financial instruments are traded freely without restrictions, based on supply and demand forces.

Foreign Competitors

Companies based in one country that compete with those in another country, often affecting market share, pricing strategies, and innovation efforts.

External Environment

The external forces that affect an organization's performance, including economic, technological, socio-cultural, and political factors.

Economic Conditions

Refers to the current state of the economy, characterized by factors like unemployment rates, inflation levels, and GDP growth.