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Unformatted text preview: TABLE 21-2
Assume the following economy:
/y Tl 2.
3. 0 C = 100 + 0.6Y
7 = 200 , A (~ 11) From the information in Table 21-2 we can estimate that the simple multiplier will be
E) 5.0. 11) 12) The marginal propensity to consume is expressed as
A) the change in the consumption divided by the change in savings.
-, B) total consumption divided by total disposable income.
C) the change in consumption divided by total disposable income.
D^fotal consumption divided by the change in disposable income.
E) $ie change in consumption divided by the change in disposable income.
13) An increase in the real interest rate will cause _
A) a decrease; an increase
B) an increase; an increase
C) an increase; a decrease
D) a decrease; a decrease
'E) a decrease; no change in desired consumption and _ in 14) In a simple macroeconomic model, with a closed economy and rib government the aggregate
expenditure function is the sum of
A) actual consumption and actual investment.
B) saving and desired investment.
C) consumption and saving.
ffi desired consumption and desired investment.
E) consumption and disposable income.
15) In a simple model of the economy, with no government and no foreign trade, the equilibrium level
of national income is the level of income at which
jf) saving equals desired investment.
B) aggregate desired expenditure less than actual national income.
C) saving equals consumer spending.
D) aggregate desired expenditure is greater than actual national income.
E) aggregate desired expenditure equals consumer spending. 13) \/ 14) \s ...
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This note was uploaded on 01/15/2012 for the course ECON 104 taught by Professor Peter during the Summer '09 term at Camosun College.
- Summer '09
- Marginal Propensity To Consume