Consider the Simplest Macro Model with a Constant Price Level

question 106

Multiple Choice

Consider the simplest macro model with a constant price level and demand-determined output.The equations of the model are: C = 60 + 0.43Y,I = 150,G = 260,T = 0,X = 90,IM = 0.06Y.The marginal propensity to spend on national income,z,is

• A)0.06.
• B)0.37.
• C)0.43.
• D)0.49.
• E)0.63.

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Definitions:

Physiological Aroused

A state of heightened physiological activity, involving increased heart rate, sweating, and energy levels, as a response to a stimulant or stressor.

Cortisol Levels

The concentration of cortisol, a stress hormone, in the blood, which can affect various bodily functions.

Stressor

Any event, experience, or environmental stimulus that causes stress in an individual.

Experimental Group

In an experiment, this group receives or is exposed to the treatment or condition being tested, in contrast to the control group.