Suppose National Output Is £3500, Autonomous Consumption Is £200 and the Marginal

question 1

Multiple Choice

Suppose national output is £3500, autonomous consumption is £200 and the marginal propensity to consume (MPC) is 0.8 in a closed economy with no government sector. What is the level of investment in this economy?

• A) £2500
• B) £750
• C) £500
• D) £3300

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Definitions:

Selling

The act or process of exchanging a product or service for money; a fundamental business activity.

Complex Process

Describes a procedure or operation that is intricate, involving multiple steps, components, or layers.

Prospect's Five Mental Steps

The chronological thought process a potential buyer goes through: awareness, interest, evaluation, trial, and adoption.

Ignorance

The state of being unaware, uninformed, or lacking knowledge about something.