In Econland Autonomous Consumption Equals 700, the Marginal Propensity to Consume

question 112

Multiple Choice

In Econland autonomous consumption equals 700, the marginal propensity to consume equals 0.80, net taxes are fixed at 50, planned investment is fixed at 100, government purchases are fixed at 100, and net exports are fixed at 40. The slope of the expenditure line is:

• A)0.20.
• B)0.80.
• C)0.90.
• D)0.99.

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Definitions:

Inner Ear

The innermost part of the ear, containing the cochlea, vestibule, and semicircular canals, responsible for hearing and balance.

Five Senses

The traditional set of senses used for perception: sight, hearing, taste, smell, and touch.

Sensory Threshold

The minimum level of stimulus intensity needed for a stimulus to be perceived.

Stimulation

The act of arousing or urging into action, often by providing an external stimulus to trigger a response.