Assume That in a Private Closed Economy Consumption Is $240

question 162

Multiple Choice

Assume that in a private closed economy consumption is $240 billion and investment is $50 billion at the $280 billion level of domestic output.Thus:

• A)saving is $10 billion.
• B)unplanned disinvestment of $10 billion will occur.
• C)the MPC is.80.
• D)unplanned investment of $10 billion will occur.

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Definitions:

Parasympathetic

The part of the autonomic nervous system that conserves energy by slowing the heart rate and increasing intestinal and gland activity.

Thoracolumbar Division

A region of the spine made up of the thoracic and lumbar vertebrae, often referred to in studies relating to spinal injuries or abnormalities.

Sympathetic

Refers to the part of the autonomic nervous system that prepares the body for rapid response to stress or danger.

Parasympathetic

Part of the autonomic nervous system responsible for the body's rest and digest response, regulating internal organs and glands.