In Our Simple Macro Model with Government and Foreign Trade,the

question 73

Multiple Choice

In our simple macro model with government and foreign trade,the marginal propensity to consume out of disposable income is ________ whereas the marginal propensity to consume out of national income is ________.

• A)MPC; MPC(1 - t)
• B)MPC(1 - t); MPC
• C)MPC(1 - t)- m; MPC(1 - t)
• D)MPC; MPC(1 - t)- m
• E)MPC(1 - t); MPC(1 - t)- m

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Definitions:

Expenses Incurred

Costs that a company has become legally obligated to pay, often in the course of its normal business operations.

Capital

Financial assets or the financial value of assets, such as cash and securities, owned by an individual or organization, especially those used to start or operate a business.

Market Value

The current quoted price at which an asset or service can be bought or sold in a public marketplace.

Economic Condition

Refers to the current state of the economy in a particular area or globally, often evaluated based on factors like GDP, employment rates, and inflation.