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:

Authorization

The process of giving someone permission to do or have something, often related to access in security systems or financial transactions.

Whitelisting

Whitelisting is the practice of explicitly allowing some identified entities access to a particular privilege, service, mobility, access, or recognition. It is used in computing to ensure only approved software or email senders can execute or be received.

Multi-factor Authentication

A security measure that requires two or more proofs of identity from independent categories to grant access to a system or data.

ID Cards

Cards that serve as a tool for identification, typically including personal details and sometimes biometric data, to authenticate the identity of the holder.