Suppose Aggregate Output Is Demand-Determined

question 104

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 $8 billion,the marginal propensity to spend must be

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

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Definitions:

Chemical Facilities

Industrial or commercial sites where chemicals are produced, processed, or stored.

Federal Government

The national government of a federal country, such as the United States, which has specific powers granted by the Constitution, distinct from state governments.

Corporation Social Responsibility

Practices and policies undertaken by corporations to positively impact societal, environmental, and economic domains.

Corporate Profits

The earnings of a corporation after all expenses, taxes, and costs have been deducted from total revenue.