In Econland Autonomous Consumption Equals 700, the Marginal Propensity to Consume

question 46

Multiple Choice

In Econland autonomous consumption equals 700, the marginal propensity to consume equals 0.80, net taxes are fixed at 50, planned investment is fixed at 100, government purchases are fixed at 100, and net exports are fixed at 40. Planned aggregate expenditure equals:

• A)990 + 0.20Y.
• B)900 + 0.80Y.
• C)940 + 0.80Y.
• D)990 + 0.80Y.

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Definitions:

Buying Process

The series of steps consumers go through in deciding what product or service to purchase.

New Buy

A transaction situation characterized by a consumer purchasing a product or service for the first time, which involves a higher level of decision-making and risk.

B2B Buying Situation

The context or scenario surrounding a purchase decision made by a business from another business, including factors such as urgency, budget, and specifications.

New Buy

A situation where a customer purchases a product or service for the first time, usually involving more decision-making efforts and information search.