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

---

Definitions:

Reliability

How much a testing tool delivers steady and dependable results throughout time.

Validity

The degree to which a notion, conclusion, or measurement is solidly based and accurately reflects reality.

Bias

A tendency to lean in a certain direction, either in favor of or against a particular thing, often in a way that is considered to be unfair.

IQ Test

A formal assessment created to gauge cognitive abilities and the intelligence level of individuals.