Assume That an Increase of $300 in Exports Leads to an Increase

question 52

Multiple Choice

Assume that an increase of $300 in exports leads to an increase of $750 in equilibrium income.If the marginal propensity to import equals 1/10, the marginal propensity to save must be _____.

• A)0.60
• B)0.50
• C)0.40
• D)0.30
• E)0.25

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Definitions:

Polygyny

A form of marriage in which a man is allowed to have more than one wife.

Polygamy

The practice or condition of having more than one spouse at the same time.

Monogamy

Monogamy is a relationship or mating system in which an individual has only one partner during their lifetime or at any one time.

Reproductive Advantage

An evolutionary benefit that leads to an organism having more offspring than others, contributing to its genetic traits being passed on more widely.