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:

Clavicle Fracture

A break in the clavicle or collarbone, one of the most commonly fractured bones, often resulting from a fall onto the shoulder or an outstretched arm.

Scarf Sign

A neonatal assessment where the examiner gently moves one of the baby's arms across the body to touch the opposite shoulder, assessing for developmental dysplasia or neuromuscular disorders.

Strawberry Hemangioma

A benign vascular tumor characterized by a red, lumpy area on the skin that is present at birth or develops within a few weeks after.