Solved

In Macroland, Autonomous Consumption Equals 100, the Marginal Propensity to Consume

Question 142

Multiple Choice

In Macroland, autonomous consumption equals 100, the marginal propensity to consume equals 0.75, net taxes are fixed at 40, planned investment is fixed at 50, government purchases are fixed at 150, and net exports are fixed at 20. The vertical intercept of the expenditure line is:


A) 0.25.
B) 0.75.
C) 290.
D) 320.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q136: If the marginal propensity to consume is

Q137: When actual investment is less than planned

Q138: The four components of planned aggregate expenditure

Q139: Refer to the accompanying figure. <img src="https://d2lvgg3v3hfg70.cloudfront.net/TB6547/.jpg"

Q140: House prices in the U.S. increased dramatically

Q141: In the Keynesian cross diagram, the vertical

Q143: In the short-run Keynesian model, if the

Q144: In the basic Keynesian model all of

Q145: If consumption increases by $9 when disposable

Q146: When housing prices increase, household wealth _,