Quiz5 - Quiz 5 (1) The IS-LM model takes: a. b. c. d....

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Quiz 5 (1) The IS-LM model takes: a. National income as exogenous b. The price level as exogenous c. The interest rate as exogenous d. National income and the price level as exogenous (2) In the Keynesian-cross model, actual expenditure equals: a. GDP b. The money supply c. The supply of real balances d. Both (b) and (c) (3) According to the analysis underlying the Keynesian cross, when planned expenditure exceeds income: a. Income falls b. Planned expenditure falls c. Unplanned inventory investment is negative d. Prices rise (4) The government-purchases multiplier indicates effects of $1 change in government purchases on change in: a. Budget deficit b. Consumption c. Income d. Interest rate (5) According to the Keynesian-cross analysis, if MPC stands for marginal propensity to consume, then a rise in taxes of T Δ will: a. Decrease equilibrium income by T Δ b. Decrease equilibrium income by ) 1 /( MPC T - Δ c. Decrease equilibrium income by ) 1 /( ) )( ( MPC MPC T - Δ d. Not affect equilibrium income at all
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Quiz5 - Quiz 5 (1) The IS-LM model takes: a. b. c. d....

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