Suppose the Marginal Propensity to Consume Out of Disposable Income

question 81

Multiple Choice

Suppose the marginal propensity to consume out of disposable income is 0.6 and the marginal propensity to import is 0.14.If the net tax rate is 0.1,then what is the marginal propensity to spend in this economy?

• A)0.30
• B)0.40
• C)0.46
• D)0.50
• E)0.60

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Definitions:

Digital Modules

Electronic components that are used to process digital signals within a computer or electronic system.

Discrete Modules

Specialized modules in automation systems designed for processing binary inputs and outputs, such as switches and indicators.

Analog Interface Input

Circuitry or devices that receive analog signals and convert them into a form that can be processed or analyzed by a digital system.

Thermocouple

A temperature sensor made by joining two different metals that generate a voltage proportional to a temperature difference.