If the Marginal Propensity to Consume Is 0

question 152

Multiple Choice

If the marginal propensity to consume is 0.5,what is the value of the expenditure multiplier?

• A) 1.0
• B) 1.5
• C) 2.0
• D) 0.5
• E) 10.0

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Definitions:

Prospective Customers

Potential clients or customers who are considered likely to purchase a business's products or services.

Flying Car

A type of vehicle that can function both as a standard road vehicle and an aircraft, offering a personal air travel option.

Ultimate Consumers

The end-users who purchase and use products and services for their personal use, as opposed to buying them for resale or production.

Organizational Buyers

Refers to entities such as businesses, governments, and institutions that purchase goods or services for use in the production of other goods and services, for resale, or for general business operations.