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

question 34

Multiple Choice

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

• A) 100.
• B) 290.
• C) 320.
• D) 350.
• E) 360.

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Definitions:

Adjusted Balance

A method used to calculate the balance of an account after adjusting for any debits and credits that have occurred during the period.

Prepaid Insurance

Prepaid Insurance is the portion of an insurance premium that has been paid in advance and is recognized as an asset until the coverage period lapses.

Adjusted Balance

A method of calculating account balances that takes into account all debits and credits, including pending transactions, at the end of a period.

Depreciation Expense

The systematic allocation of the cost of a tangible asset over its useful life, reflecting the decrease in value of the asset over time.