Equations for C, I, G, and NX Are Given Below

question 240

Multiple Choice

Equations for C, I, G, and NX are given below.If the equilibrium level of GDP is $32,000, what is the marginal propensity to consume? C = 5,000 + (MPC) Y
I = 1,500
G = 2,000
NX = -500

• A)0.6
• B)0.67
• C)0.75
• D)0.8
• E)0.9

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Definitions:

Indexed Variables

Variables in an array or collection that are accessed via their position or index in the structure, allowing for efficient data retrieval.

Character Array

An array that holds characters, commonly used to store strings of text in programming.

String Object

An object in programming that represents a sequence of characters used to store and manipulate text.

Collection Object

An object that groups multiple elements into a single unit, typically provided by a collection framework in languages like Java.