In Macroland, Autonomous Consumption Equals 100, the Marginal Propensity to Consume

question 36

Multiple Choice

In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. Planned aggregate expenditure equals:

• A)290 + 0.25Y.
• B)320 + 0.25Y.
• C)320 + 0.75Y.
• D)290 + 0.75Y.

Analyze the cultural responses to the Depression in art and literature.

Evaluate the role and impact of the New Deal policies on the American banking system and welfare state.

Acknowledge the significance of Dust Bowl, Public Works Administration, and Congress of Industrial Organizations in American history.

Understand the racial and social dynamics within New Deal policies and their impact on American society.

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Definitions:

Open Market

An economic system in which prices for goods and services are determined by unrestricted competition between privately owned businesses.

Stockholders

Individuals or entities that own shares in a corporation, thereby having an ownership interest in the company.

Stock Repurchase

When a company buys back its own shares from the marketplace, reducing the amount of outstanding stock on the open market.

Dividend

A portion of a company's earnings distributed to shareholders, usually in the form of cash or additional stocks.