Suppose Aggregate Output Is Demand-Determined

question 71

Multiple Choice

Suppose aggregate output is demand-determined.If the business community decreases its planned investment expenditures by $4 billion,causing equilibrium national income to fall by $12 billion,the marginal propensity to spend must be

• A)1/3.
• B)1/2.
• C)2/3.
• D)4/5.
• E)3.

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Definitions:

Neonatal

Refers to the first four weeks after birth, a period that is critical for the child's survival and health.

Neonatal

Pertaining to the newborn period, specifically the first 28 days of life, focusing on medical care and conditions of newborn infants.

Fetal

Pertaining to a fetus, which is a developing human from roughly eight weeks after conception until birth.

Prenatal

Pertains to the period or development before the birth of a baby.