In Macroland, Autonomous Consumption Equals 100, the Marginal Propensity to Consume

question 90

Multiple Choice

In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. The slope of the expenditure line is:

• A)0.25.
• B)0.75.
• C)290.
• D)320.

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Definitions:

Nature And Nurture

A debate regarding the relative contributions of genetic inheritance (nature) and environmental factors (nurture) to human development.

Kagan

A reference to Jerome Kagan, a psychologist known for his work in child development, particularly his studies on temperament.

Object Of Attachment

An individual, typically a caregiver or significant other, to whom a person forms an emotional and physical bond during early development.

Process

A series of actions or steps taken in order to achieve a particular end.