Consider the Following Information Describing an Economy with Demand-Determined Output

question 48

Multiple Choice

Consider the following information describing an economy with demand-determined output.There is no government or foreign trade.All dollar figures are in billions.
1.equilibrium condition is Y = C + I
2.marginal propensity to save = 0.20
3.the autonomous part of C is $50
4.investment is autonomous and equals $25
TABLE 21-5
-Refer to Table 21-5.At the equilibrium level of national income,what is the level of desired consumption expenditures?

• A)$68.75
• B)$125
• C)$150
• D)$350
• E)$375

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Definitions:

Standard Deviation

A tool to determine the degree of difference or dispersion within a batch of data.

Standard Normal

A type of normal distribution with a mean of 0 and a standard deviation of 1.

Random Variable

A numerical value variable resulting from random phenomena.

Random Variable

A variable representing numerical results from a chance event.