Mock Midterm _2

Mock Midterm _2 - Exam Name_ MULTIPLE CHOICE. Choose the...

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Exam Name___________________________________ MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Based on our understanding of the model presented in Chapter 3, a reduction in investment will cause: 1) A) an increase in the multiplier B) a reduction in output C) a reduction in the marginal propensity to save D) both (b) and (d) E) a reduction in the multiplier 2) Which of the following events will cause a reduction in equilibrium output? 2) A) an increase in taxes. B) a reduction in the marginal propensity to consume. C) an increase in the marginal propensity to save. D) all of the above. E) none of the above. 3) The economy in Chapter 3 is in equilibrium when which of the following conditions is satisfied? 3) A) total saving equals zero. B) total saving equals investment. C) output equals consumption. D) consumption equals saving. E) all of the above. 4) We would expect which of the following to occur when the central bank conducts an open market
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Mock Midterm _2 - Exam Name_ MULTIPLE CHOICE. Choose the...

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