Assuming That Investment,government Expenditures,and Net Exports Are All Autonomous,the Marginal

question 118

Multiple Choice

Assuming that investment,government expenditures,and net exports are all autonomous,the marginal propensity to consume for the economy represented in Figure 9.9 is

• A)1.0 since aggregate expenditure is a straight line.
• B)0.5.
• C)0.25.
• D)Indeterminate since there is no consumption function.

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Definitions:

Achieving Goal

The process of setting, pursuing, and attaining objectives or desired outcomes.

Force-Field Analysis

A technique used to identify, discuss, and evaluate the various forces for and against a proposed change.

Relevant Factors

Elements or variables that are pertinent to the understanding or outcome of a situation, analysis, or decision-making process.

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The present conditions or status of an organization, process, or system at a specific point in time.