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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