Question
1.In an economy with no government and no foreign sector GDP is $8,000, autonomous consumption is $600, planned investment spending is $400 and marginal propensity
1.In an economy with no government and no foreign sector GDP is $8,000, autonomous consumption is $600, planned investment spending is $400 and marginal propensity to consume is 0.8. How much is planned aggregate spending?
a)$8,000
b)$7,600
c)$6,800
d) $7,400
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Historical Perspectives On The American Economy Selected Readings
Authors: Robert Whaples, Dianne C Betts
1st Edition
0521466482, 9780521466486
