Answer the Question on the Basis of the Following Data

question 170

Multiple Choice

Answer the question on the basis of the following data for a private closed economy. $\begin{array}{l}\text { Possible Levels of Domestic }\\\begin{array} { c c c } \underline{\text { Output and Income (GDP = DI) } }&\underline{ \text { Consumption }} \\\$320& \$ 320 \\330 & 327 \\340 & 334 \\350 & 341 \\360 & 348 \\370 & 355 \\380 & 362\end{array}\end{array}$ Refer to the data.At the $370 billion level of DI,the APS is approximately:

• A) 4 percent.
• B) 7 percent.
• C) 1 percent.
• D) 16 percent.

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Definitions:

Expected Loss

The anticipated amount of loss a party might suffer in an investment or venture, taking into account the likelihood of various outcomes.

Probability

The likelihood of a particular event happening.

Moral Hazard

A situation in which one party engages in risky behavior or fails to act in good faith because another party bears the consequences or costs.

Taxi Driver

An individual who operates a car for hire to transport passengers as a profession.