Assume That in a Private Closed Economy Consumption Is $240

question 162

Multiple Choice

Assume that in a private closed economy consumption is $240 billion and investment is $50 billion at the $280 billion level of domestic output.Thus:

• A)saving is $10 billion.
• B)unplanned disinvestment of $10 billion will occur.
• C)the MPC is.80.
• D)unplanned investment of $10 billion will occur.

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Definitions:

Groupthink

A psychological phenomenon in which the desire for harmony and conformity in a group results in an irrational or dysfunctional decision-making outcome.

Devil's Advocate

Playing the devil’s advocate involves taking a contrary position or argument, not necessarily personally held, to challenge assumptions and stimulate critical thinking in a discussion.

Critical Evaluator

An individual skilled in assessing situations, arguments, or evidence objectively to make reasoned judgments.

Teams

Groups of individuals working collaboratively towards a common goal, often characterized by complementary skills and mutual accountability.