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

question 306

Multiple Choice

Equations for C, I, G, and NX are given below.If the equilibrium level of GDP is $21,500, what is the marginal propensity to consume? C = 1,500 + (MPC) Y
I = 1,000
G = 2,000
NX = -200

• A)0.67
• B)0.75
• C)0.8
• D)0.9
• E)1

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Definitions:

Pragmatics

A branch of linguistics dealing with the use of language in social contexts and the ways in which people convey meaning through communication.

Formal Etiquette

The set of conventional rules for polite behavior in societal or official life, often used in ceremonies, formal events, and in interactions among dignitaries.

Syntax

The set of rules that dictate the structure and order of words in sentences for the purposes of communication in a language.

Telegraphic Speech

The use of short, precise words without grammatical markers such as articles, auxiliary verbs, and other connectives.