12.If the MPCis 0.8, then the multiplier is:
13.The marginal propensity to consume (MPC) is equal to the change in:
14.If disposable income increases by $5 billion and consumer spending increases by $4 billion, themarginal propensity to consume is equal to:
15.Suppose the marginal propensity to consume is equal to 0.9 and investment spending increasesby $50 billion. Assuming no taxes and no trade, by how much will real GDP change?A.$450 billion increaseB.$90 billion increaseC.$500 billion increaseD.$500 billion decreaseAnswer:C
16.The spending multiplier is equal to:
17.Suppose that a financial crisis decreases investment spending by $100 billion and the marginalpropensity to consume is 0.8. Assuming no taxes and no trade, by how much will real GDPchange?