Quiz_232 - 57 IftheMPCis0.95,thena$ A $200million B $105million C $950million D $9.5million 57 Answer D Diff:2 PageRef:757\/383 Topic:

Quiz_232 - 57 IftheMPCis0.95,thena$ A $200million B...

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57) If theMPCis 0.95, then a $10 million increase in disposable income will A) increase consumption by $200 million.B) decrease consumption by $105 millionC) increase consumption by $950 million.D) increase consumption by $9.5 million.Answer: D57)Diff: 2Page Ref: 757/383Topic: Consumption and National IncomeLearning Outcome: Macro 8: Investigate the relationship between income and expendituresAACSB: Analytic Skills 58) If national income increases by $75 million and consumption increases by $15 million, the marginalpropensity to consume is 58)Diff: 2Page Ref: 758/384Topic: Consumption and National IncomeLearning Outcome: Macro 8: Investigate the relationship between income and expendituresAACSB: Analytic Skills 59) When we graph consumption as a function of national income rather than as a function of________, the slope of this consumption function is the ________. 59)Diff: 2Page Ref: 758/384Topic: Consumption and National IncomeLearning Outcome: Macro 8: Investigate the relationship between income and expendituresAACSB: Reflective Thinking 60) If the marginal propensity to save is 0.1, then a $10 million decrease in disposable income will 60)Diff: 2Page Ref: 760/386 Topic: The Marginal Propensity to Save Learning Outcome: Macro 8: Investigate the relationship between income and expenditures AACSB: Analytic Skills
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