Suppose Aggregate Output Is Demand- Determined

question 46

Multiple Choice

Suppose aggregate output is demand- determined. Suppose a decrease in autonomous investment expenditure of $20 million reduces equilibrium national income by $50 million. The marginal propensity to spend is equal to

• A)0.4.
• B)- 0.6.
• C)- 2.5.
• D)2.5.
• E)0.6.

---

Definitions:

Typology

The study and classification of things according to their characteristics or types.

System Scope

The boundary that defines the extent of a system, including its components and functionalities, distinguishing it from other systems.

Array Projects

A series of projects or tasks that are organized and managed in parallel or sequentially to achieve a common objective.

Interactive Systems

Systems designed to respond to inputs or actions from users, facilitating two-way communication and engagement.