Suppose the value of marginal propensity to save (MPS) is 0.25, investment is £300 and autonomous consumption is £250 in a closed economy with no government sector. What is the equilibrium national output?
A) £5500
B) £7500
C) £6250
D) £2200
Correct Answer:
Verified
Q19: Suppose an individual's marginal propensity to save
Q20: Suppose consumption is equal to £170. If
Q21: Which of the following correctly describes the
Q22: Suppose the government increases both spending and
Q23: If planned aggregate expenditure in the economy
Q25: In a closed economy with no government
Q26: Suppose the value of the marginal propensity
Q27: If the marginal propensity to save (MPS)
Q28: In the Keynesian Cross model, the equilibrium
Q29: Suppose the marginal propensity to consume in
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents