(Advanced Analysis)In a Private Closed Economy, (A)the Marginal Propensity to Save

question 53

Multiple Choice

(Advanced analysis) In a private closed economy, (a) the marginal propensity to save is 0.25, (b) consumption equals income at $120 billion,and (c) the level of investment is $40 billion.What is the equilibrium level of income?

• A) $280 billion.
• B) $320 billion.
• C) $262 billion.
• D) $198 billion.

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Definitions:

Corporate Governance

The structures, policies, and practices in place within an organization to ensure accountability, fairness, and transparency in the company's relationship with its stakeholders.

Inside Directors

Board members who are also employees, officers, or stakeholders in the company, providing them with detailed knowledge of its business operations.

Outside Directors

Members of a company's board of directors who are not part of the company's day-to-day operations and are often brought in for their expertise or to provide an objective perspective.

Core Values

Fundamental beliefs or principles that serve as the foundation for an organization's culture, actions, and decisions.