Suppose Aggregate Output Is Demand- Determined

question 60

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 $20 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:

Photosynthesis

The biological process used by plants and some other organisms to convert light energy into chemical energy stored in glucose or other organic compounds.

Thylakoid Compartment

A structure within chloroplasts where light-dependent reactions of photosynthesis occur.

Hydrogen Ions

Protons or atoms of hydrogen that have lost their electron, thus carrying a positive electric charge.

ATP Molecules

Adenosine triphosphate molecules, which are the primary energy carrier in all living organisms, providing energy for cellular processes.