If national income = $5,000 . autonomous consumption = $200, the MPC = 0.80, and intended investment demand is $800, 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
A
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The product life cycle model says that comparative advantage in manufactured goods may move from one country to another as a product becomes more standardized
Indicate whether the statement is true or false
On paper, the Bank of Canada has ________ instrument independence and ________ goal independence when compared to the Federal Reserve System
A) less; less B) less; more C) more; less D) more; more
The adage, "There is no such thing as a free lunch," is used to illustrate the principle that
a. goods are scarce. b. people face tradeoffs. c. income must be earned. d. households face many decisions.
As depicted in the circular flow diagram, firms:
A. demand the goods and services that households supply in product markets. B. supply the goods and services that households demand in product markets. C. demand the resources that households supply in product markets. D. supply the resources that households demand in factor markets.