Option B
Explanation: The slope of the expenditure curve reflects the rate of change in expenses with respect to a change in income. This is the same with the marginal propensity to expand.
The slope of the expenditures curve is: B. equal to the marginal propensity to expend. C....
The marginal propensity to expend is .6. Autonomous expenditures are $3,600. What is the level of equilibrium income in the economy?
The marginal propensity to expend is 65. Autonomous expenditures are $4,400. What is the level of equilibrium income in the economy? Instructions: Round intermediate calculations to two decimal places. Enter your response rounded to the nearest dollar amount Equilibrium income is $ .
7. In a hypothetical aggregate expenditures (AE) model, the marginal propensity to consume is 0.80. Given this information, what is the slope of the Consumption (C) line in this hypothetical AE model?
The multiplier is equal to Multiple Choice Ο 1- Marginal propensity to save Ο Marginal propensity to save + Marginal propenstyto consume Ο C) 1. Marginal propensity to save. Ο C) 1 - Marginal propensity to consume.
The ________ the marginal propensity to import, the ________ the expenditure multiplier. A. larger; smaller B. smaller; smaller C. larger; more negative D. larger; larger E. None of the above is correct, because the expenditure multiplier is not related to the marginal propensity to import.
25. Suppose the marginal propensity to consume is 0.63, the marginal propensity to import equals 0.08, and personal income taxes amount to 9 percent of GDP. The spending multiplier for this economy is equal to _____. a. 0.54 b. 0.80 c. 1.25 d. 1.41 e. 1.85
Use the aggregate expenditures model and assume the marginal propensity to consume is 0.90. An increase in government spending of $1 billion would result in an increase in GDP of?
The absolute value of the slope of the production possibilities curve is the A. marginal rate of substitution. B. contract curve. C. offer curve. D. Engel curve. E. marginal rate of transformation.
3. If the marginal propensity to consume is .9, and investment expenditures increase by $100 billion, what is the projected increase in GDP?
if the marginal propensity to consume (MPC) is equal to 0.7, government increases spending by $X, and the GDP increases by $1000. Calculate $X. A. $500 B. $100. C. There is not enough information to answer the question. D. $ 400. E. $300.