In Macroland, Autonomous Consumption Equals 100, the Marginal Propensity to Consume

question 36

Multiple Choice

In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. Planned aggregate expenditure equals:

• A)290 + 0.25Y.
• B)320 + 0.25Y.
• C)320 + 0.75Y.
• D)290 + 0.75Y.

---

Definitions:

Acute Medical Condition

A sudden onset of a disease or disorder that requires immediate care, typically characterized by severe and abrupt symptoms.

Chronic

Describing a condition or disease that is persistent or long-lasting in its effects, often for the duration of one's life.

Gastrointestinal

Referring to the stomach and intestines, and related to the process of digestion and the management of diseases affecting this system.

Upper Respiratory

Pertaining to the upper part of the respiratory system, including the nose, throat, and trachea.