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

question 12

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. The slope of the Expenditure Line is:

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

---

Definitions:

Authorship

The credit given to individuals for their contribution to the creation of a work, such as a book, article, or study.

Gender

The range of characteristics pertaining to, and differentiating between, masculinity and femininity, often based on societal norms.

Automobile Accident

An unforeseen event involving a vehicle that results in damage or injury.

Responsibility

The state or fact of having a duty to deal with something or of having control over someone.