Assuming That Investment,government Expenditures,and Net Exports Are All Autonomous,the Marginal

question 114

Multiple Choice

Assuming that investment,government expenditures,and net exports are all autonomous,the marginal propensity to consume for the economy represented in Figure 9.9 is

• A)1.0 since aggregate expenditure is a straight line.
• B)0.5.
• C)0.25.
• D)Indeterminate since there is no consumption function.

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Definitions:

Probability Distribution

A function in mathematics that offers the chances of various outcomes happening in an experiment.

Average Profit

The mean amount of profit earned, calculated by dividing the total profit by the number of units sold or the period over which the profit was earned.

Weight Gain

An increase in body weight, which can be due to muscle mass increase, fat accumulation, or other factors.

Probability Distribution

A mathematical description of the likelihood of different outcomes in an experiment, showing how probabilities are distributed over a range of values.