Multiple Choice
Use the following to answer questions .
Exhibit: Aggregate Expenditures Curve
Figure 13-6 
-(Exhibit: Aggregate Expenditures Curve) Let Y = real GDP, AE = Aggregate Expenditures, C = Consumption, IP = Planned Investment, G = Government Purchases. Further, IP and G are autonomous. What is the marginal propensity to consume?
A) 0.25
B) 0.5
C) 1.0
D) 2
Correct Answer:
Verified
Correct Answer:
Verified
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