If the Consumption Function Is C = 750

question 42

Multiple Choice

If the consumption function is C = 750 + .75Y and there are no income taxes,then the expenditure multiplier is

• A) .75
• B) .25
• C) 4.0
• D) 3.0
• E) 1,000

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Definitions:

Production Function

An economic model depicting the relationship between input combinations and the maximum output that can be produced with those inputs.

Differentiating

The process of distinguishing a product or service from others to make it more attractive to a particular target market.

Brand Positioning

Marketing strategy that aims to create a unique impression in the customer's mind so that the customer associates something specific and desirable with the brand that is distinct from the rest of the marketplace.

Local Responsiveness

Adjusting or creating an approach to meet the differentiated needs of local markets, of local customers, of local stakeholders such as government officials and employees, and of suppliers and distributors.