Suppose Marginal Propensity to Consume (MPC)is 0

question 209

Multiple Choice

Suppose marginal propensity to consume (MPC) is 0.7 and there is a $1,000 increase in autonomous consumption. Given this information, real GDP will increase by

• A)$3,333.
• B)$1,429.
• C)$1,000.
• D)$700.

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Definitions:

Sales Response Function

A model or analysis that predicts the relationship between sales efforts and the resulting sales performance or outcomes.

Territory Formation

The process of assigning sales territories, defining geographic or market-based areas for sales representatives to cover.

Product Lines

Product lines are groups of related products that a company sells, offering varying versions to reach different customer needs or preferences.

Concentrated Liquid

Refers to a solution that has a high proportion of solute compared to its solvent, often requiring dilution before use.