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

question 43

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. Induced expenditure equals:

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

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Definitions:

Patriarchal

Related to a social system where men hold primary power and predominate in roles of political leadership, moral authority, social privilege, and control of property.

Emotionally Distant

Refers to individuals who are not easily open to sharing their feelings or forming close emotional connections with others.

Myths

Traditional stories, often with a historical basis, that serve to explain a practice, belief, or natural phenomenon.

Misconceptions

Incorrect or mistaken beliefs or ideas stemming from misunderstanding or lack of knowledge.