Answer the next questions on the basis of the following information about a two-sector economy: Item Amount Breakeven level of national income 450 The Average Propensity to save (APS) At national income level of (1000) 0.22 Investment Expenditures 60 Full Employment of National Income 700 1. The Marginal Propensity to Consume (MPC) is: A. 0.50 В. 0.60 C. 0.70 D. 0.75 2. The Multiplier is: A. 2.5 В. 3 C.4 D. 5
Answer the next questions on the basis of the following information about a two-sector economy: Item Amount Breakeven level of national income 450 The Average Propensity to save (APS) At national income level of (1000) 0.22 Investment Expenditures 60 Full Employment of National Income 700 1. The Marginal Propensity to Consume (MPC) is: A. 0.50 В. 0.60 C. 0.70 D. 0.75 2. The Multiplier is: A. 2.5 В. 3 C.4 D. 5
Chapter9: Aggregate Demand
Section: Chapter Questions
Problem 4.8P
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Question
![Answer the next questions on the basis of the following information about a two-sector economy:
Item
Amount
Breakeven level of national income
450
The Average Propensity to save (APS) At national income level of (1000)
0.22
Investment Expenditures
60
Full Employment of National Income
700
1. The Marginal Propensity to Consume (MPC) is:
A. 0.50
B. 0.60
C. 0.70
D. 0.75
2. The Multiplier is:
A. 2.5
В. 3
C. 4
D. 5](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fb5d18c22-2a5c-4277-822f-19e3cd123e2d%2F27464cbc-2cfe-43e9-abb2-f7531c129764%2F5vtpi5g_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Answer the next questions on the basis of the following information about a two-sector economy:
Item
Amount
Breakeven level of national income
450
The Average Propensity to save (APS) At national income level of (1000)
0.22
Investment Expenditures
60
Full Employment of National Income
700
1. The Marginal Propensity to Consume (MPC) is:
A. 0.50
B. 0.60
C. 0.70
D. 0.75
2. The Multiplier is:
A. 2.5
В. 3
C. 4
D. 5
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