Multiple Choice
Consider the simplest macro model with a constant price level and demand-determined output.The equations of the model are: C = 60 + 0.43Y,I = 150,G = 260,T = 0,X = 90,IM = 0.06Y.The marginal propensity to spend on national income,z,is
A) 0.06.
B) 0.37.
C) 0.43.
D) 0.49.
E) 0.63.
Correct Answer:
Verified
Correct Answer:
Verified
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