# Consider a simple macro model with a constant price

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Chapter 15 / Exercise 30
Exploring Macroeconomics
Sexton
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106) Consider a simple macro model with a constant price level and demand-determined output. If themarginal propensity to spend in such a model is one, the simple multiplier isA) zero.B) a positive number between zero and one.C) one.D) a positive number greater than one but less than infinity.E) infinitely large.
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##### We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
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Chapter 15 / Exercise 30
Exploring Macroeconomics
Sexton
Expert Verified
107) Consider a simple macro model with a constant price level and demand-determined output. If themarginal propensity to spend in such a model is between zero and one, the simple multiplier is
107)108) Consider a simple macro model with a constant price level and demand-determined output. If themarginal propensity to spend in such a model is 0.6, the simple multiplier is
108)109) Consider a simple macro model with a constant price level and demand-determined output. If themarginal propensity to spend in such a model is 0.4, the simple multiplier is
109)110) Consider a simple macro model with a constant price level and demand-determined output. If themarginal propensity to spend in such a model is 0.8, the simple multiplier isA) 0.B) 0.8.C) 1.25.D) 5.0.E) 8.0.
110)111) Consider a simple macro model with demand-determined output. Ifzis the marginal propensityto spend out of national income,Yis national income andAis autonomous expenditure, then thesimple multiplier is equal to
111)112) Consider a simple macro model with demand-determined output. In such a model, the larger themarginal propensity to spend, the
112)113) Consider a simple macro model with demand-determined output. In such a model, the smallerthe marginal propensity to spend, the
113)114) Consider a simple macro model with demand-determined output. In such a model, the multiplieris larger, theA) lower the level of autonomous expenditures.B) lower theAPC.C) flatter the slope of theAEfunction.D) steeper the slope of theAEfunction.E) higher the level of autonomous expenditures.
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115) Consider a simple macro model with demand-determined output. Using such a model, ifeconomists want to estimate the effect of a given change in desired investment on equilibriumnational income, they would multiply the change in desired investment by the reciprocal of oneminus
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