If the Marginal Propensity to Save Is 0

question 227

Multiple Choice

If the marginal propensity to save is 0.25,then a $10,000 decrease in disposable income will

• A)increase consumption by $7,500.
• B)increase consumption by $2,500.
• C)decrease consumption by $7,500.
• D)decrease consumption by $2,500.

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Definitions:

Price-Based Competition

A competitive strategy focusing on setting prices lower than competitors to attract price-sensitive customers.

Product Life Cycle

The stages a product goes through from its introduction into the market through its growth, maturity, and eventual decline.

Product Life Cycle

The product life cycle is the progression of a product through different stages from introduction to growth, maturity, and decline.

Marketers

Professionals or companies involved in promoting, selling, and distributing a product or service to consumers.