Suppose Aggregate Output Is Demand-Determined

question 37

Multiple Choice

Suppose aggregate output is demand-determined.Suppose a decrease in autonomous investment expenditure of $20 million reduces equilibrium national income by $50 million.The marginal propensity to spend is equal to

• A)-0.6.
• B)0.4.
• C)0.6.
• D)2.5.
• E)-2.5.

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Definitions:

Blastula

An early stage of embryonic development in animals, characterized by a hollow sphere of cells surrounding a fluid-filled cavity.

Zona Pellucida

A thick, transparent membrane surrounding the plasma membrane of mammalian oocytes and early embryos.

Granulosa Cells

Cells that surround developing eggs in the ovary and secrete hormones important for egg maturation and the menstrual cycle.

Telolecithal Eggs

Eggs containing a large amount of yolk concentrated at one pole, common in birds, reptiles, and some fish.