In Macroland,autonomous Consumption Equals 100,the Marginal Propensity to Consume Equals

question 52

Multiple Choice

In Macroland,autonomous consumption equals 100,the marginal propensity to consume equals 0.75,net taxes are equal to 40,planned private-sector investment is equal to 50,government purchases are equal to 150,and net exports are equal to 20.Induced planned aggregate expenditure equals ______________.

• A) 0.25Y
• B) 320 + 0.25Y
• C) 0.75Y
• D) 290 + 0.75Y
• E) 0.75 (Y-T)

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