Exhibit 13.1 Assume the Marginal Propensity to Consume for U.S.households Equals 0.9,and

question 38

Multiple Choice

Exhibit 13.1
Assume the marginal propensity to consume for U.S.households equals 0.9,and the marginal propensity to import for the United States equals 0.1.Suppose there occurs an increase in investment of $10 billion at each level of income.
-Refer to Exhibit 13.1.The change in the level of U.S.income resulting from the additional investment spending equals

• A) $20 billion
• B) $30 billion
• C) $40 billion
• D) $50 billion

---

Definitions:

Employee Compensation

All forms of pay or rewards going to employees and arising from their employment, including salary, wages, bonuses, and benefits.

Organizational Culture

The shared values, beliefs, norms, and practices that guide the behavior of people within an organization.

Stakeholders

Individuals or groups that have an interest, stake, or investment in the outcomes of a corporation, project, or decision.

Institutionalization

The process by which certain practices or norms become established and accepted as a formal part of a society or organization.