In a Simple Economy in Which Prices Are Constant and with No

question 114

Multiple Choice

In a simple economy in which prices are constant and with no income taxes or imports, the marginal propensity to save is 0.2. If exports increase $50, what impact will that have on aggregate expenditure?

• A) decrease by $100
• B) increase by $100
• C) decrease by $250
• D) increase by $250

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Definitions:

Standard Deviation

A statistical measure that quantifies the variation or dispersion of a set of data points from their mean value.

Mean

The arithmetic average of a set of values, or distribution.

Scores

Quantitative measures or values used to represent an individual's performance, ability, or achievement in various contexts.

Statistically Significant

Statistically significant refers to a mathematical measure indicating that an observed pattern or relationship in data is not likely to occur due to chance.