mid term practice

mid term practice - Name: _ Date: _ 1. If the aggregate...

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Date: _____________ 1. If the aggregate consumption equals $100,000,000 + .75 × YD , then the marginal propensity to save is: A) 0.75. B) 0.25. C) -$75,000,000. D) -$100,000,000. 2. David receives a tax refund of $800. He spends $600 and saves $200. David's marginal propensity to consume is: A) 0.6. B) 0.75. C) 0.25. D) 0.20. 3. Other things being equal, expectations of lower disposable income in the future would ________ and shift the consumption function _________. A) increase autonomous consumption; to the right B) decrease the marginal propensity to consume; to the left C) decrease autonomous consumption; to the right D) increase the marginal propensity to consume; to the right 4. If a CD store has 10,000 CDs at the start of the period and it has 15,000 CDs at the end of the period, then during the period its inventory investment was: A) –5,000. B) 0.67. C)
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mid term practice - Name: _ Date: _ 1. If the aggregate...

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