Consider the Following Information Describing a Closed Economy with No

question 118

Multiple Choice

Consider the following information describing a closed economy with no government and where aggregate output is demand determined. All dollar figures are in billions.
1. the equilibrium condition is Y = C + I
2. the marginal propensity to consume is 0.90
3. the autonomous part of C is $300
4. investment is autonomous and is $100
TABLE 21-3
-Refer to Table 21-3. The correct expression for the aggregate expenditure function for this economy is

• A) AE = $760 billion
• B) AE = $300 billion + 0.9Y
• C) AE = $400 billion + 0.9Y
• D) AE = $400 billion + 0.1 YD.
• E) AE = $200 billion + 0.1 YD.

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Definitions:

Protein

Large biological molecules, or macromolecules, consisting of one or more long chains of amino acid residues, functioning in various roles within organisms.

Melanin Production

The process by which cells known as melanocytes produce melanin, a pigment that colors the skin, hair, and eyes.

Thick Skin

Skin type found in areas like the palms and soles, characterized by a thicker epidermis and lacking hair follicles.

Stratum Lucidum

A thin, transparent layer of the epidermis located between the stratum granulosum and stratum corneum, found only in certain areas like the palms and soles.