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

question 166

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.Short-run equilibrium output in this economy equals

• A) 387.
• B) 1,000.
• C) 1,150.
• D) 1,160.
• E) 1,280.

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Definitions:

Yield to Maturity

Yield to Maturity (YTM) is the total return anticipated on a bond if the bond is held until the date it matures, accounting for interest payments and principal recovery.

Par Value

The face value of a bond or stock as stated by the issuing company, not necessarily its market value.

Annual Coupon

The annual interest payment made to bondholders, typically fixed and expressed as a percentage of the bond's face value.

Income Effect

The change in an individual's or economy's income and how that change affects the quantity demanded of a good or service.