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

question 61

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. The slope of the Expenditure Line is:

• A) 0.20.
• B) 0.80.
• C) 0.90.
• D) 0.99.

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Definitions:

Degrees Fahrenheit

A temperature scale where water's freezing point is at 32 degrees and its boiling point is at 212 degrees, given standard atmospheric conditions.

Temperature

A measure of the hotness or coldness of an object or substance with reference to some standard value.

Thermostat

A thermostat is a device used to control the temperature of a system so that the system's temperature is maintained near a desired set-point by regulating the flow of heat energy into or out of the system.

Degrees Fahrenheit

Degrees Fahrenheit is a unit of temperature where water freezes at 32 degrees and boils at 212 degrees under standard atmospheric conditions.