If the Multiplier Is 4, the Marginal Propensity to Consume

question 253

Multiple Choice

If the multiplier is 4, the marginal propensity to consume (MPC) must be

• A)0.25.
• B)0.5.
• C)0.75.
• D)1.

---

Definitions:

Products

Goods or services offered by a business or manufacturer, created to fulfill the needs and desires of consumers.

Objectives

Targets or goals that an individual, group, or organization aims to achieve.

Employee Motivation

The level of commitment, drive, and energy that a company's workers bring to their jobs in order to contribute to the organization's success.

Employee Stock Ownership Plan

A program that gives employees the opportunity to buy shares in the company they work for, often at a discounted price.