The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc)= 0.80
• net tax rate (t)= 0.15
• no foreign trade
• fixed price level
• all expenditure and income figures are in billions of dollars. FIGURE 22-3
Refer to Figure 22-3.What is the level of autonomous consumption?
A)$0
B)$325
C)$350
D)$650
E)$1000

Question

The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc)= 0.80
• net tax rate (t)= 0.15
• no foreign trade
• fixed price level
• all expenditure and income figures are in billions of dollars.  FIGURE 22-3
Refer to Figure 22-3.What is the level of autonomous consumption?
A)$0 
B)$325 
C)$350 
D)$650 
E)$1000

Quizplus · Accepted Answer

The Answer of The diagram below shows desired aggregate expenditure for a hypothetical economy.Assume the following features of this economy: • marginal propensity to consume (mpc)= 0.80
• net tax rate (t)= 0.15
• no foreign trade
• fixed price level
• all expenditure and income figures are in billions of dollars.  FIGURE 22-3
Refer to Figure 22-3.What is the level of autonomous consumption?
A)$0 
B)$325 
C)$350 
D)$650 
E)$1000

The Diagram Below Shows Desired Aggregate Expenditure for a Hypothetical