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

question 289

Multiple Choice

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

• A)0.67
• B)0.75
• C)0.8
• D)0.9

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Definitions:

Income Statement

A financial statement that shows a company's revenues, expenses, and profit or loss over a specific period of time.

Financial Position

A snapshot of a company's financial health, encompassing assets, liabilities, and equity at a given point in time.

Specific Date

A particular day specified for a certain event, transaction, or deadline.

Return On Assets

A financial ratio indicating the profitability of a company relative to its total assets, measuring efficiency in generating earnings.