posted a question
If investment increases by $100 and, as a result, GDP ultimately increases by $200, the multiplier equals which of the following?
Answer 1
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5
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If the MPC < 1 and a household's disposable income increases by $2,000, the household's consumption will:

1. increase by less than $2,000.
2. increase by $2,000.
decrease if the family was wealthy before the income change.
3. remain the same unless the change in income significantly affects the household's wealth.
4. remain the same.

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Aggregate supply reflects billions of production decisions made by:

1. consumers when they decide which products to purchase.
2. households and firms, because they each demand goods and services.
3. the largest firms and largest households.
households, which demand resources, and firms, which supply resources.
4. resource suppliers and firms.

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The larger the marginal propensity to save, and other things constant:
the larger the marginal propensity to consume.
the smaller the multiplier.
the larger the multiplier.
the steeper the consumption function.
the flatter the saving function.
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That fraction of a change in disposable income that is consumed is called:
autonomous consumption.
induced consumption.
the multiplier.
the marginal propensity to consume.
the marginal propensity to save.
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The aggregate supply curve reflects the relationship between:
1. the price of a particular good and the quantity supplied by all firms producing that good.
2. the price of a particular good and the quantity supplied by the aggregate economy.
3. the price level and the quantity of all goods supplied in the economy.
4. the price level and the quantity purchased of all goods in the economy.
5. the price level and investment spending.
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A household that expects a decrease in disposable income in the future will:
1. increase its current consumption spending.
2. decrease its current consumption spending.
3. maintain its current consumption spending.
4. increase its current consumption spending, then increase spending when income falls.
5. decrease its current consumption spending, then increase spending when income falls.