The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical

question 74

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.What is the marginal propensity to spend (z) in this economy?

• A)0.45
• B)0.48
• C)0.65
• D)0.68
• E)0.80

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Definitions:

White Matter

The part of the brain and spinal cord made up of myelinated nerve fibers that is responsible for transmitting signals within the nervous system.

Parietal Cortex

A region of the brain located in the parietal lobe, involved in processing sensory information from various parts of the body.

Illiterate

The inability to read or write, often due to lack of education or exposure to language learning opportunities.

Literate

Having the ability to read and write at a level adequate for written communication.