If the marginal prospensity to consume is 0.75, an increase in autonomous investment of 800.00 will result in a a) 3200 increase in the level of autonomous consumption b) 3200 increase in the equilibrium level of income c) 1500 increase in the equilibrium level of income d) 1300 increase in the level of induced consumption
If the marginal prospensity to consume is 0.75, an increase in autonomous investment of 800.00 will result in a a) 3200 increase in the level of autonomous consumption b) 3200 increase in the equilibrium level of income c) 1500 increase in the equilibrium level of income d) 1300 increase in the level of induced consumption
Economics (MindTap Course List)
13th Edition
ISBN:9781337617383
Author:Roger A. Arnold
Publisher:Roger A. Arnold
Chapter19: Elasticity
Section: Chapter Questions
Problem 7QP
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![If the marginal prospensity to consume is 0.75, an increase in autonomous investment of 800.00 will result
in a
a) 3200 increase in the level of autonomous consumption
b) 3200 increase in the equilibrium level of income
c) 1500 increase in the equilibrium level of income
d) 1300 increase in the level of induced consumption](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F44b65594-48f2-4e45-85bd-d750f17a6324%2F10ac2f2e-4d00-4e5e-9ce1-8f53f45752f5%2Fveyo1s_processed.jpeg&w=3840&q=75)
Transcribed Image Text:If the marginal prospensity to consume is 0.75, an increase in autonomous investment of 800.00 will result
in a
a) 3200 increase in the level of autonomous consumption
b) 3200 increase in the equilibrium level of income
c) 1500 increase in the equilibrium level of income
d) 1300 increase in the level of induced consumption
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