If the Marginal Propensity to Consume Is 4/5, Then a Decrease

question 139

True/False

If the marginal propensity to consume is 4/5, then a decrease in government spending of $1 billion decreases the demand for goods and services by $5 billion.

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Definitions:

Product Line Extensions

Introducing additional items in the same product category under the same brand name, often to target a new segment.

MultiBranding

A marketing strategy where a company markets multiple brands in the same product category or sector.

Brand Licensing

The authorization by the licensor to allow a licensee to use a brand's name, logo, or product for a specified period against a fee.

Private Branding

A strategy where products are manufactured and offered under the retailer's brand name rather than that of the manufacturer.