Multiple Choice
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 marginal propensity to spend (z) in this economy?
A) 0.45
B) 0.48
C) 0.65
D) 0.68
E) 0.80
Correct Answer:
Verified
Correct Answer:
Verified
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