In Econland Autonomous Consumption Equals 700, the Marginal Propensity to Consume

question 46

Multiple Choice

In Econland autonomous consumption equals 700, the marginal propensity to consume equals 0.80, net taxes are fixed at 50, planned investment is fixed at 100, government purchases are fixed at 100, and net exports are fixed at 40. Planned aggregate expenditure equals:

• A)990 + 0.20Y.
• B)900 + 0.80Y.
• C)940 + 0.80Y.
• D)990 + 0.80Y.

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Definitions:

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A neurotransmitter that is mainly found in the brain, bowels, and blood platelets and is significant in regulating mood, appetite, sleep, and arousal among other functions.

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Double-blind Technique

A research method in which both the participants and the experimenters are unaware of who receives the treatment, eliminating bias.

Antipsychotic Drug

Medication primarily used to treat psychosis, including delusions, hallucinations, and schizophrenia.