Consider a Simple Macro Model with a Constant Price Level

question 79

Multiple Choice

Consider a simple macro model with a constant price level and demand-determined output.The equations of the model are: C = 150 + 0.84Y,I = 400,G = 700,T = 0,X = 130,IM = 0.08Y.The marginal propensity to spend on national income,z,is

• A)0.655.
• B)0.760.
• C)0.773.
• D)0.840.
• E)0.920.

---

Definitions:

Neurotransmitters

Chemicals within the nervous system that transmit signals from one neuron to another across synapses.

Action Potential

A short-lasting event in which the electrical membrane potential of a cell rapidly rises and falls, allowing neurons to transmit signals along the nerve.

Resting Potential

The electric potential difference across the membrane of a neuron at rest, critical for the transmission of nerve impulses.

Electrical Current

The flow of electric charge through a conductor, typically measured in amperes.