If national income = $2,000 . autonomous consumption = $100, the MPC = 0.80, and intended investment demand is $500, then actual investment will
a. equal intended investment, and the economy will be in equilibrium
b. be less than intended investment, and production and incomes will grow
c. be greater than intended investment, and production and incomes will fall
d. be less than intended investment, and production and incomes will fall
e. be greater than intended investment, and production and incomes will grow
B
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Suppose the government's initial debt is $350 billion and that during the next two years the government runs deficits of $90 and $40 billion
If during the third year the government has a $70 billion surplus, the government's total debt at the end of the three years will be A) $60 billion. B) $200 billion. C) $410 billion. D) $550 billion.
Other things equal, the gravity equation predicts that the United States will have more trade with __________ than with _________.
a. Bangladesh; Japan b. Russia; Japan c. Canada; Bangladesh d. Russia; Bangladesh