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The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical

Question 20

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The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc) = 0.80
• net tax rate (t) = 0.15
• no foreign trade
• fixed price level
• all expenditure and income figures are in billions of dollars. The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc) = 0.80 • net tax rate (t) = 0.15 • no foreign trade • fixed price level • all expenditure and income figures are in billions of dollars. FIGURE 22-3 Refer to Figure 22-3.What is the level of autonomous consumption? A) $0 B) $325 C) $350 D) $650 E) $1000 FIGURE 22-3
Refer to Figure 22-3.What is the level of autonomous consumption?


A) $0
B) $325
C) $350
D) $650
E) $1000

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