Suppose Aggregate Output Is Demand- Determined

question 93

Multiple Choice

Suppose aggregate output is demand- determined. If the business community decreases its planned investment expenditures by $4 billion, causing equilibrium national income to fall by $8 billion, the marginal propensity to spend must be

• A)2/5.
• B)1/3.
• C)1/2.
• D)2/3.
• E)4/5.

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Definitions:

Equally

In the same manner or to the same extent as another entity or individual.

Instrumental Role

The practical, task-oriented function or contribution of an individual within a given context, especially in family or work settings.

Comforts

Elements or conditions that contribute to physical or mental ease and well-being.

Barbie Syndrome

A term indicating the desire to have a physical appearance and lifestyle similar to the Barbie doll, often leading to unrealistic body image expectations.