(Advanced analysis) In a private closed economy, (a) the marginal propensity to save is 0.25, (b) consumption equals income at $120 billion, and (c) the level of investment is $40 billion. What is the equilibrium level of income?
A. $280 billion.
B. $320 billion.
C. $262 billion.
D. $198 billion.
A. $280 billion.
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Explain the effects of an import quota on domestic production, consumption, and price
What will be an ideal response?
Which of the following is true of a common market?
A. There is free movement of capital and labor among the member countries. B. The member countries export similar products to the non-member countries. C. The member countries do not import goods from the non-member countries. D. The member countries have identical monetary and fiscal policies.
The International Monetary Fund was created to achieve each of the following goals EXCEPT
A. lend funds to countries with international payment problems. B. monitor and offer advice on the exchange rate policies of member nations. C. encourage free convertibility of the currencies of member nations. D. finance large government infrastructure projects.
Refer to the given market-for-money diagrams. The total demand for money is shown by:
A. D 1 .
B. D 2 .
C. D 3 .
D. S.