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:

Profitable Situation

A financial state where income exceeds expenses, resulting in a net profit.

Foreign Bonds

Bonds issued in a domestic market by a foreign entity, denominated in the currency of the domestic market.

Single Country

Pertains to investments or activities that are focused exclusively within one country's borders.

Triangle Arbitrage

Triangle arbitrage involves exploiting an arbitrage opportunity resulting from a pricing discrepancy among three different currencies in the foreign exchange market.