The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical

question 20

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) = 0.80
• net tax rate (t) = 0.15
• no foreign trade
• fixed price level
• all expenditure and income figures are in billions of dollars. FIGURE 22-3
Refer to Figure 22-3.What is the level of autonomous consumption?

• A)$0
• B)$325
• C)$350
• D)$650
• E)$1000

---

Definitions:

1990s

The decade that began on January 1, 1990, and ended on December 31, 1999, known for technological advances and global political changes.

American People

The citizens or inhabitants of the United States of America, characterized by a diverse blend of cultures, ethnicities, and traditions.

George W. Bush Administration

The executive period of the United States government from 2001 to 2009, marked by events such as the September 11 attacks and the initiation of the Iraq War.

Domestic Accomplishments

Achievements or tasks completed within the home or pertaining to internal affairs of a country.