In the Table Given Below Y Represent the Aggregate Expenditure

question 14

Multiple Choice

In the table given below Y represent the aggregate expenditure of the economy on C = consumption, I = investment, G = government projects, and X = net exports.
Table 9.3
$\begin{array}{c}\text { Aggregate Expenditures }\\\begin{array}{|c|c|c|c|c|}\hline \mathbf{Y} & \mathbf{C} & \mathbf{I} & \mathbf{G} & \mathbf{X} \\\hline \$ 0 & \$ 50 & \$ 75 & \$ 150 & \$ 40 \\\hline \$ 150 & \$ 125 & \$ 75 & \$ 150 & \$ 10 \\\hline \$ 300 & \$ 200 & \$ 75 & \$ 150 & -\$ 20 \\\hline \$ 450 & \$ 275 & \$ 75 & \$ 150 & -\$ 50 \\\hline \$ 600 & \$ 350 & \$ 75 & \$ 150 & -\$ 80 \\\hline\end{array}\end{array}$
-According to Table 9.3, what is the marginal propensity to import?

• A) -0.20
• B) 0.40
• C) -0.50
• D) 0.75
• E) -0.80

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Definitions:

Operating Cycle

The amount of time it takes for a company to purchase inventory, sell it, and convert the sales back into cash.

Interest Expense

The cost incurred by an entity for borrowed funds, representing interest payments made or accrued on outstanding debts.

Income Statement

A financial statement that shows a company's revenues and expenses over a specific period, resulting in net income or loss.

Current Liabilities

Short-term financial obligations that are due within one year or within the normal operating cycle of a business.