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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