If and , Determine the Value of C

question 73

Multiple Choice

If and , determine the value of c. Round to two decimal places.

• A)10.29
• B)16.24
• C)18.56
• D)4.99
• E)4.36

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Definitions:

Simple Multiplier

The ratio used to estimate the proportional amount of increase, or decrease, in final income that results from an injection, or withdrawal, of spending.

Marginal Propensity

The rate at which an individual, household, or economy is likely to consume (or save) with respect to an incremental increase in income.

Multiplier

An economic factor that quantifies the impact of increased spending in the economy, leading to a proportional increase in income and consumption.

Marginal Propensity

The proportion of an additional unit of income that is spent on consumption; a key concept in Keynesian economics related to how income changes affect spending.