If the Amount of Spending in an Economy Declines by $1,000

question 238

Multiple Choice

If the amount of spending in an economy declines by $1,000 and the marginal propensity to consume is 0.8, the effect on the economy is a change of _____ in income or output.

• A) $800
• B) $1,000
• C) $1,000.0
• D) $5,000

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Definitions:

Marketing

The activities, set of institutions, and processes for creating, communicating, delivering, and exchanging offerings that have value for customers, clients, partners, and society at large.

Direct

Straightforward or without intermediary; often used in marketing to describe sales tactics that appeal directly to the consumer.

Traffic Generation

The process of attracting visitors to a particular website, storefront, or digital platform.

Direct Marketing

A type of advertising strategy that allows businesses to communicate directly with potential customers through various channels, such as mail, email, or phone, without intermediaries.