If the Marginal Leakage Rate Is 0

question 86

Multiple Choice

If the marginal leakage rate is 0.2,then a $300 fall in autonomous planned expenditures will shift the IS curve leftward by the amount of

• A)$300.
• B)$1500.
• C)$75.
• D)$600.

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Definitions:

Probability Distribution

A mathematical representation that outlines all possible outcomes and their probabilities for a random variable within a specified scope.

Sample

A subset of individuals, items, or events from a larger population used to draw conclusions about that population.

Population Mean

The average of all the values in a population. It is a parameter that describes the central tendency of the entire population.

Sample Mean

The average of all values in a subset of a population, used as an estimate of the population mean.