Which of the following relations is not correct? O A. MPC + MPS = 1. O B. APS +APC = 1. OC. MPS = MPC + 1. O D. 1- MPC = MPS.

ENGR.ECONOMIC ANALYSIS
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Chapter1: Making Economics Decisions
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Question 4
Which of the following relations is not correct?
O A. MPC + MPS = 1.
O B. APS + APC = 1.
OC. MPS = MPC + 1.
O D. 1- MPC = MPS.
Transcribed Image Text:esponse. Question 4 Which of the following relations is not correct? O A. MPC + MPS = 1. O B. APS + APC = 1. OC. MPS = MPC + 1. O D. 1- MPC = MPS.
Refor to the Table fora private closed economy and match the correct answer.
Domestic Output or Income
(GDP- DI)
Consumption
$ 540
$ 540
560
555
580
570
600
585
620
600
640
615
660
630
If planned investment is $25 billion, then aggregate expenditures at the income level of A. $580.
$560 billion will be
B. Decrease by $12 billion.
vIf planned investment is $18 billion, then at the $660 billion level of disposable income,
the unplanned inventory will
C. Increase by $12 billion.
D. $400.
E. Increase by $10 billion.
F. $640.
G. Increase by $30 billion.
Transcribed Image Text:Refor to the Table fora private closed economy and match the correct answer. Domestic Output or Income (GDP- DI) Consumption $ 540 $ 540 560 555 580 570 600 585 620 600 640 615 660 630 If planned investment is $25 billion, then aggregate expenditures at the income level of A. $580. $560 billion will be B. Decrease by $12 billion. vIf planned investment is $18 billion, then at the $660 billion level of disposable income, the unplanned inventory will C. Increase by $12 billion. D. $400. E. Increase by $10 billion. F. $640. G. Increase by $30 billion.
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