If for Every One Dollar Increase in Income,savings Increases by 25

question 8

Multiple Choice

If for every one dollar increase in income,savings increases by 25 cents,the marginal propensity to consume is _________ and the closed economy multiplier is ______.

• A).25,4
• B).75,4
• C).25,.04
• D).75,1.333

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Definitions:

Point-Of-Purchase Display

Marketing materials or advertising placed next to the merchandise they promote, typically in the checkout area.

Freestanding Rack

An independent display unit used in retail to showcase products.

Sales Promotions

Marketing activities aimed at increasing sales and customer interest in products or services.

Greatly Reduced Price

A significant decrease in the price of a product or service, often used as a sales promotion technique.