The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical

question 4

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 the level of autonomous consumption?

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

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Definitions:

Mexican People

denotes the citizens or natives of Mexico, a country in North America with a rich culture that blends indigenous and Spanish influences.

Internal Affairs

An area of governmental or organizational activity focused on matters within its own operations or borders, often related to law enforcement or administrative policies.

Military Power

The might or strength of a country's armed forces, encompassing its capacity to defend itself against threats and to exert influence or coercion, often measured by the size, technology, and capability of its military.

Economic Development

Economic development is the process by which a country, region, or community improves the economic, political, and social well-being of its people, often through targeted policies and initiatives to spur growth and reduce poverty.