The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical

question 8

Multiple Choice

The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc) = 0.75
• net tax rate (t) = 0.20
• no foreign trade
• fixed price level
• all expenditure and income figures are in billions of dollars. FIGURE 22-2
Refer to Figure 22-2.What is total autonomous expenditure?

• A)$0
• B)$75
• C)$100
• D)$175
• E)$250

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Definitions:

Neural Impulses

Electrical signals that travel along neurons, facilitating communication within the nervous system.

Receptor Cells

Specialized cells that respond to specific kinds of energy, such as light, sound, or chemicals, and convert them into neural signals.

Optic Nerve

A cranial nerve that transmits visual information from the retina to the brain, enabling sight.

Iris

The colored part of the eye that controls the size of the pupil and thus the amount of light that enters the eye.