If the Consumption Function Is Defined as C = 7,250

question 86

Multiple Choice

If the consumption function is defined as C = 7,250 + 0.8Y,what is the value of the multiplier?

• A)0.2
• B)0.8
• C)1.25
• D)5

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Definitions:

Equilibrium Quantity

At the market equilibrium price, the amount of goods or services provided matches the amount that is demanded.

Focused Cost Leadership

A strategy where a company aims to be the lowest cost producer in a particular niche or segment.

Market Segment

A subgroup of people or organizations sharing one or more characteristics that cause them to have similar product and service needs.

Operations

The day-to-day activities involved in running a business, focusing on the efficient and effective production and delivery of goods and services.