Answer smaller level of wealth greater greater mps

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Answer smaller; level of wealth; greater greater; MPS ; greater Page 5 of 48
greater; MPC ; smaller greater; MPC ; greater Add Question Here Question 32 Multiple Choice 0 points Modify Remove Question Suppose investment spending increases by $50 billion, and as a result the equilibrium income increases by $200 billion. The investment multiplier is: Answer 8. 10. 4. 1/4. Add Question Here Question 33 Multiple Choice 0 points Modify Remove Question Suppose investment spending increases by $50 billion, and as a result the equilibrium income increases by $200 billion. The value of the MPC is: Answer 0.8. 0.4. 0.75. 4. Add Question Here Question 34 Multiple Choice 0 points Modify Remove Question If the multiplier is 4, and investment spending falls by $100 billion, the change in equilibrium income will be: Answer –$400 billion. $400 billion. $25 billion. –$25 billion. Add Question Here Question 35 Multiple Choice 0 points Modify Remove Question Suppose the government increases its spending by $100 billion as a stimulus package. If the MPC is 0.6, then equilibrium income will: Answer decrease by $250 billion. increase by $250 billion. increase by $600 billion. decrease by $400 billion. Add Question Here Question 36 Multiple Choice 0 points Modify Remove Question According to the National Bureau of Economic Research, the U.S. economy is going through a severe recession. Most households are trying to save more of their income than before. This increase in private spending will lead to: Answer an increase in aggregate income as more saving means more funds for business investment. a fall in aggregate income as more saving means people will spend less. no change in aggregate income because there is no saving multiplier. an increase in aggregate income as an increase in saving will make people wealthier. Add Question Here Question 37 Multiple Choice 0 points Modify Remove Question If the size of MPS is small, it will: Answer make the multiplier smaller. make the multiplier larger. not affect the value of the multiplier. increase the interest rate. Add Question Here Question 38 Multiple Choice 0 points Modify Remove Question You and a co-worker have been trying to develop a linear equation that describes the local household consumption function. Your co- worker has sent you a very short email that simply says he has finished the project and the consumption function is: C = 100 + .75( YD ). Your job is to explain this result to your supervisor. According to this consumption function, what is the marginal propensity to consume? Answer 100 0.75 4 0.25 Add Question Here Question 39 Multiple Choice 0 points Modify Remove Question You and a co-worker have been trying to develop a linear equation that describes the local household consumption function. Your co- worker has sent you a very short email that simply says he has finished the project and the consumption function is: C = 100 + .75( YD ).

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