Consider the Following Information Describing an Economy with Demand-Determined Output

question 60

Multiple Choice

Consider the following information describing an economy with demand-determined output.There is no government or foreign trade.All dollar figures are in billions. 1.equilibrium condition is Y = C + I
2.marginal propensity to save = 0.20
3.the autonomous part of C is $50
4.investment is autonomous and equals $25
TABLE 21-5
Refer to Table 21-5.The equilibrium level of national income is

• A)$375.
• B)$249.
• C)$155.
• D)$75.
• E)$93.75.

Understand the role of values in consumer decision-making.

Recognize the significance of government spending in B2B markets.

Differentiate between personality characteristics and lifestyle traits in consumer behavior.

Understand the significance of problem recognition in the consumer buying process.

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Definitions:

Budget Deficit

A financial situation in which expenditures exceed revenue over a specific period, often referring to government spending.

Economic Recovery

The period of growth and improvement in economic indicators such as GDP, employment, and consumer spending following a recession.

Capital Projects

Large-scale investment projects that are undertaken by organizations or governments, which usually have a long-term impact on the economy.

Functional Finance

Functional finance is a theoretical approach to fiscal policy which holds that government budgets should be primarily evaluated on their effects on the economy rather than on principles of borrowing and debt.