292) Given the equations forC,I,G, andNXbelow, what is the marginal propensity to consume?C=1,000+0.8YI=1,500G=1,250NX=100A) 0.2B) 0.8C) 1.8D) 10Answer: B292)Page Ref: 812-813/430-431Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.293) Given the equations forC,I,G, andNXbelow, what is the marginal propensity to save?C=1,000+0.8YI=1,500G=1,250NX=100293)Page Ref: 812-813/430-431Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.294) If the consumption function is defined asC=7,250+0.8Y, what is the autonomous level ofconsumption expenditure?294)Page Ref: 812-813/430-431Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.295) If the consumption function is defined asC=7,250+0.8Y, what is the marginal propensity tosave?295)Page Ref: 812-813/430-431Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.296) If the consumption function is defined asC=7,250+0.8Y, what is the multiplier?A) 0.2B) 0.8C) 1.25D) 5Answer: D296)Page Ref: 812-813/430-431Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.297) If the consumption function is defined asC=5,500+0.9Y, what is the marginal propensity toconsume?297)Page Ref: 812-813/430-431Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.69

298) Equations forC,I,G, andNXare given below. If the equilibrium level of GDP is $21,500, what isthe marginal propensity to consume?C=1,500+(MPC)YI=1,000G=2,000NX= -200298)Page Ref: 812-813/430-431Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.TRUE/FALSE. WriteʹTʹif the statement is true andʹFʹif the statement is false.299) If consumption is defined asC=2,000+0.8Y, then the marginal propensity to save is 0.8.299)Answer:TrueFalsePage Ref: 812/430Learning Outcome: Macro-8: Investigate the relationship between income and expenditures.

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