If disposable income is 85 per cent of national income, the marginal propensity to consume (out of disposable income) is 0.7, and imports are 22 per cent of national income, then the marginal propensity to spend on national output is: . a. 0.375 O b. 0.595 OC. 0.850 O d. 0.220

If disposable income is 85 per cent of national income, the marginal propensity to consume (out of disposable income) is 0.7, and imports are 22 per cent of national income, then the marginal propensity to spend on national output is: . a. 0.375 O b. 0.595 OC. 0.850 O d. 0.220

Economics:

10th Edition

ISBN:9781285859460

Author:BOYES, William

Publisher:BOYES, William

Chapter9: Aggregate Expenditures

Section: Chapter Questions

Problem 10E

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n 30
0 out
If disposable income is 85 per cent of national income, the marginal propensity to consume (out
of disposable income) is 0.7, and imports are 22 per cent of national income, then the marginal
propensity to spend on national output is:
. a. 0.375
b. 0.595
c. 0.850
d. 0.220

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