CH 27 Expenditure Multipliers - University of Lethbridge Department of Economics ECON 1012 Introduction to Macroeconomics Instructor Michael G Lanyi CH

# CH 27 Expenditure Multipliers - University of Lethbridge...

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University of Lethbridge Department of Economics ECON 1012 Introduction to Macroeconomics Instructor: Michael G. Lanyi CH 27 Expenditure Multipliers 1)Disposable income is A)aggregate income minus transfer payments.B)used for consumption only.C)aggregate income plus transfer payments.D)aggregate income minus taxes.E)aggregate income minus taxes plus transfer payments. Topic: Fixed Prices and Expenditure Plans 2)Dissaving occurs when a household Topic: Fixed Prices and Expenditure Plans 3)Complete the following sentence. A household Topic: Fixed Prices and Expenditure Plans 4)The marginal propensity to consume is the Topic: Fixed Prices and Expenditure Plans 5)The marginal propensity to consume is calculated as A)consumption expenditure divided by the change in disposable income.B)the change in consumption expenditure divided by the change in disposable income.C)consumption expenditure divided by total disposable income.D)the change in consumption expenditure divided by disposable income.E)the change in consumption expenditure divided by saving. Topic: Fixed Prices and Expenditure Plans 1
6)The marginal propensity to save is calculated as the change in saving divided by the change in disposable income. Topic: Fixed Prices and Expenditure Plans 7)The marginal propensity to consume is greater than 1 if dissaving is present. C) is between 1/2 and 1. D) is negative if dissaving is present. E) is greater than 1 but less than 2. Topic: Fixed Prices and Expenditure Plans

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