If national income = $1,000 . autonomous consumption = $200, the MPC = 0.80, and intended investment demand is $200, 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
You might also like to view...
We know that the minimum wage causes unemployment. So, why does the government impose a minimum wage?
What will be an ideal response?
Which of the following statements is correct about the relationship between inflation and interest rates?
a. There is no relationship between inflation and interest rates. b. The interest rate is determined by the rate of inflation. c. In order to fully understand inflation, we need to know how to correct for the effects of interest rates. d. In order to fully understand interest rates, we need to know how to correct for the effects of inflation.
In a PPF graph of goods X and Y, points that lie beyond (to the right of) the PPF represent combinations of the two goods that are currently unattainable
Indicate whether the statement is true or false
Refer to the above table. What does total product equal when 4 units of labor are used?
A. 960 B. 320 C. 1328 D. 332