Suppose Aggregate Output Is Demand-Determined

question 37

Multiple Choice

Suppose aggregate output is demand-determined.Suppose a decrease in autonomous investment expenditure of $20 million reduces equilibrium national income by $50 million.The marginal propensity to spend is equal to

• A)-0.6.
• B)0.4.
• C)0.6.
• D)2.5.
• E)-2.5.

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Definitions:

Determinant Products

Items that serve as a deciding factor for consumers when choosing between similar products.

Product Specifications

Detailed descriptions and criteria of a product's features, dimensions, materials, and performance standards.

Request For Proposals

A document issued by a business or organization inviting suppliers to submit a proposal on a specific product or service.

Eat Right Group

An initiative or organization focused on promoting healthy eating habits and nutritional awareness among the public.