If the Multiplier Is 10, Then the Marginal Propensity to Consume

question 67

Multiple Choice

If the multiplier is 10, then the marginal propensity to consume (MPC) is

• A)0.9.
• B)0.1.
• C)1.
• D)9.

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Definitions:

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A financial metric that measures variable costs as a percentage of sales, reflecting how those costs fluctuate with production output.

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Sales Commissions

Payments made to sales personnel based on sales volume or value, serving as an incentive for increased sales performance.

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A professional responsible for developing, implementing, and executing marketing plans for an organization or product, aiming to attract potential customers and retain existing ones.