Consider the Simplest Macro Model with Demand-Determined Output

question 107

Multiple Choice

Consider the simplest macro model with demand-determined output.Suppose an increase in business confidence leads firms to increase investment in new equipment by $100 million.The marginal propensity to spend in this economy is 0.75.What is the increase in expenditure in this economy during the second round of spending?

• A)$25 million
• B)$100 million
• C)$400 million
• D)$75 million
• E)$500 million

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Definitions:

Homosexuality

A sexual orientation characterized by romantic or sexual attraction between people of the same sex.

Transsexuals

Individuals who undergo medical and surgical interventions to alter their anatomical sex to match their gender identity.

Transgender People

Refers to individuals whose gender identity differs from the sex they were assigned at birth.

Asexual

A term relating to a lack of sexual attraction to others, or low or absent interest in or desire for sexual activity.