Total planned expenditure (equals income) is 45,000, C- cr= 1000, the marginal propensity to consume is 0.5, government purchases are 6,000, taxes are 5,000 and Net exports is 5,000. planned investment spending is

Total planned expenditure (equals income) is 45,000, C- cr= 1000, the marginal propensity to consume is 0.5, government purchases are 6,000, taxes are 5,000 and Net exports is 5,000. planned investment spending is

Macroeconomics: Principles and Policy (MindTap Course List)

13th Edition

ISBN:9781305280601

Author:William J. Baumol, Alan S. Blinder

Publisher:William J. Baumol, Alan S. Blinder

Chapter8: Aggregate Demand And The Powerful Consumer

Section: Chapter Questions

Problem 8DQ

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Question

Total planned expenditure (equals income) is 45,000, C- cr= 1000, the marginal propensity to consume is 0.5, government purchases
are 6,000, taxes are 5,000 and Net exports is 5,000.
planned investment spending is
O A. -19000
OB. 13000
OC. -13000
OD. 19000

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