If Y = $500 billion, autonomous consumption = $400 billion, and the marginal propensity to save = 0.20, then saving will equal:

a. ?$300 billion.
b. $300 billion.
c. $0.
d. $80 billion.
e. ?$80 billion.


a

Economics

You might also like to view...

Early nineteenth century banks primarily

(a) enabled small savers to buy shares in a diversified portfolio of investments. (b) accepted and managed checkable deposits. (c) provided a broad range of financial services. (d) relied on a federal safety fund in times of well spread crisis.

Economics

Refer to the above figure. Moving from point A to point B indicates

A) an increase in supply. B) an increase in quantity supplied. C) a decrease in supply. D) a decrease in quantity supplied.

Economics

According to Milton Friedman, a person's MPC will change as their actual income changes

Indicate whether the statement is true or false

Economics

When G = T the government is running a budget deficit

Indicate whether the statement is true or false

Economics