When Tom's Income Is $20,000, He Spends $18,000 and When

question 7

Multiple Choice

When Tom's income is $20,000, he spends $18,000 and when his income increases to $30,000, he spends $23,000. His MPC is

• A)0.3.
• B)0.5.
• C)0.65.
• D)0.77.
• E)0.90.

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Definitions:

Centralized Structure

An organizational model where decision-making authority is concentrated at the top levels of management, leading to a cohesive and streamlined operation.

CMO

Chief Marketing Officer, a senior executive responsible for the development and implementation of marketing strategies in an organization.

Social Media Activations

Marketing tactics designed to engage and grow a brand's presence on social media platforms.

Reach

The total number of different people or households exposed to an advertisement or a social media post, often expressed as a percentage of the target market.