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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Definitions:

Service Firms

Businesses that provide intangible products or services to consumers or other businesses.

Manufacturing Firms

Companies that use labor, equipment, and raw materials to produce finished goods on a large scale.

Work in Process Inventory

Goods partially completed during the manufacturing process, not yet ready for sale.

Materials Ledger Cards

Records used to track the quantities and costs of materials on hand in inventory through receipts, issuances, and balances.