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.

---

Definitions:

Job Interview

A formal meeting between a job applicant and a potential employer where the applicant is assessed for suitability for a specific position.

Eye Contact

The act of two individuals looking into each other's eyes, which is often interpreted as a sign of attention, confidence, or sincerity.

Soft Skills

Personal attributes that enhance an individual's interactions, job performance, and career prospects, including communication and teamwork skills.

Ethical Decisions

Decisions made with consideration for what is morally right and fair.