Using the Keynesian Cross, If Autonomous Consumption Is $300 and Investment

question 2

Multiple Choice

Using the Keynesian cross, if autonomous consumption is $300 and investment is $200, and the marginal propensity to consume is 0.9, while government spending, net exports and taxes are zero, then equilibrium output is

• A) $450.
• B) $500.
• C) $5,000.
• D) $950.

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Definitions:

Specific Movements

Targeted or deliberate muscle movements or actions that are designed to achieve a particular result or function.

CNS

Central Nervous System, comprising the brain and spinal cord, responsible for processing and sending out neural signals.

Stepwise Sequence

A methodical approach to solving problems or performing tasks where progress is made in a logical sequence of steps.

Visual Cortex

The region of the brain that processes visual information.