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

question 135

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 vertical intercept of the expenditure line is:

• A)890.
• B)900.
• C)940.
• D)990.

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Definitions:

Technological Advance

The development and application of innovative technologies that enhance efficiency, productivity, or capabilities in processes, products, or services.

Production Possibilities

The various combinations of goods and services that a society can produce using its available resources and technology.

Innovation

The process of creating, developing, and implementing new products, services, or processes.

Diffusion

in the context of innovation, refers to the process by which a new idea, product, or practice spreads within a population or society.