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

question 6

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.At the equilibrium level of national income,what is the level of desired consumption expenditures?

• A)$68.75
• B)$125
• C)$150
• D)$350
• E)$375

---

Definitions:

Objective Attributes

Measurable or factual features of a product or service, such as size, weight, or speed, which can be directly observed and quantified.

Subjective Attributes

Characteristics or features of a product or service that are based on personal opinions, tastes, or feelings rather than objective measures.

Temporal States

Conditions or states that are temporary and subject to change over time, often used in psychology and philosophy discussions.

Information Sources

Various means from which information can be obtained, including books, journals, websites, and expert interviews, among others.