If the Marginal Propensity to Consume Is 0

question 305

Multiple Choice

If the marginal propensity to consume is 0.9, then the tax multiplier will be:

• A)impossible to determine.
• B)greater than 10.
• C)less than 10.
• D)zero, because there is no multiplier effect from taxes.

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Definitions:

Psychographic Variables

Characteristics of consumers that describe their psychological attributes, including attitudes, interests, values, and lifestyles, which influence purchasing behavior.

Target Audience

The specific group of people at whom a product, a service, or a marketing message is aimed.

Product Usage

Refers to the manner and frequency with which consumers or clients use a particular product.

FRM

Stands for Financial Risk Manager, a certification for finance professionals who specialize in assessing and managing financial risk.