The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical

question 17

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.Which of the following correctly describes the consumption function for this economy?

• A)C = 325 + (0.65)Y
• B)C = 350 + (0.68)Y_D
• C)C = 350 + (0.68)Y
• D)C = 1000 + (0.80)
• E)C = 1000 + (0.80)Y

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Definitions:

Biased

Showing an unfair inclination for or against someone or something based on personal opinions.

Verbosity

The quality of using more words than needed; wordiness.

Talking Too Much

The act of speaking excessively without giving others a chance to express themselves or without considering the relevance of the content.

Proxemics

The study of human use of space and the effects that population density has on behavior, communication, and social interaction.