Unformatted text preview: he following: C = 500 + .8YD. Given this S information, the marginal propensity to save is: A) 2. . B) 8. . C) . 1 D) . 5 E) one of the above n 5) uppose C = 100 + .8YD. How much of an increase in government spending must occur for S equilibrium output to increase by 1000? A) 00 1 B) 00 2 C) 50 2 D) 00 5 E) 000 1 6) n economy is in equilibrium when which of the following conditions is satisfied? A A) utput equals consumption o B) otal saving equals zero t C) onsumption equals saving c D) otal saving equals investment t E) ll of the above a 7) or a closed economy, which of the following conditions must be satisfied for equilibrium to be F maintained? A) = IM = 0. X B) = T. G C) = S. C D) one of the above n 8) et the consumption function be represented by the following equation: C = c0 + c1YD. For thi...
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- Spring '08
- marginal propensity, autonomous consumption, ZZ line