The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical

question 8

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 total autonomous expenditure?

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

---

Definitions:

Cash Payments Journal

A financial journal that records all cash outflows or payments made by a company.

Office Supplies

These are consumable items used in an office environment for daily operations, including items like pens, paper, and staplers.

Pond Supplies Expense

The costs incurred for the maintenance or operational needs of a pond.

E-commerce

The buying and selling of goods and services over the internet, encompassing a variety of transactions, including online retail and electronic payments.