Assume That in a Private Closed Economy Consumption Is $240

question 34

Multiple Choice

Assume that in a private closed economy consumption is $240 billion and investment is $50 billion,both at the $280 billion level of domestic output.Thus:

• A) saving is $10 billion.
• B) unplanned decreases in inventories of $10 billion will occur.
• C) the MPC is .80.
• D) unplanned increases in inventories of $10 billion will occur.

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Definitions:

Binomial Probability

The probability of obtaining a fixed number of successful outcomes in a fixed number of trials in a binomial experiment.

Odds

The ratio of the probability of an event happening to the probability of it not happening; in gambling, it represents the amount won relative to the stake.

Unfriended

The act of removing someone from one's social networking friends list.

Probability

The quantification of the chance of an event happening, represented as a number from 0 to 1, with 0 meaning the event is impossible and 1 meaning the event is certain.