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

question 33

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. Autonomous expenditure equals:

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

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Definitions:

Need-Based Theory

A theory that emphasizes understanding human motivation in terms of specific needs, such as safety, esteem, and self-actualization.

Cognitive Perspective

A psychological approach that focuses on the mental processes involved in knowledge acquisition, perception, memory, and problem-solving.

Goal Theory

A psychological framework suggesting that setting and striving for specific, challenging goals can significantly improve performance.

Motivated

Having the desire or willingness to act or work towards a goal due to personal interest or external incentives.