The Reason the Multiplier Is Greater Than 1 Is That

question 260

Multiple Choice

The reason the multiplier is greater than 1 is that

• A)income is re-spent.
• B)workers are capable of increasing their production when they have to.
• C)the marginal propensity to save is 1.
• D)none of the choices are correct.

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Definitions:

Psychological Pricing

Encouraging purchases based on emotional rather than rational responses to the price.

Seasonal Discount Pricing

A pricing strategy where companies offer discounts on their products or services during certain times of the year.

Penetration Pricing

A marketing strategy where the price of a product is set lower than the competitors' prices in order to quickly gain market share or attract customers.