Answer the next questions on the basis of the following information about a two-sector economy: Item Amount Breakeven level of national income 450 The Average Propensity to save (APS) At national income level of (1000) 0.22 Investment Expenditures 60 Full Employment of National Income 700 1. The Marginal Propensity to Consume (MPC) is: A. 0.50 В. 0.60 C. 0.70 D. 0.75 2. The Multiplier is: A. 2.5 В. 3 C.4 D. 5
Answer the next questions on the basis of the following information about a two-sector economy: Item Amount Breakeven level of national income 450 The Average Propensity to save (APS) At national income level of (1000) 0.22 Investment Expenditures 60 Full Employment of National Income 700 1. The Marginal Propensity to Consume (MPC) is: A. 0.50 В. 0.60 C. 0.70 D. 0.75 2. The Multiplier is: A. 2.5 В. 3 C.4 D. 5
Chapter23: The Aggregate Expenditure Model
Section: Chapter Questions
Problem 1P
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