In a simple economy with no taxes government spending

This preview shows page 7 - 10 out of 82 pages.

We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Economics
The document you are viewing contains questions related to this textbook.
Chapter 20 / Exercise 3
Exploring Economics
Sexton
Expert Verified
38.In a simple economy with no taxes, government spending, exports, or imports, if disposable income increases by $100 and $30 is saved, _____ is consumed. A) $30 B) $70 C) $100 D) $170
39.A $50 million increase in investment spending will eventually cause equilibrium real GDP to:
40.A $70 million decrease in investment spending will cause real GDP to:
41.An initial change in the desired level of spending by firms, households, or government at a given level of real GDP is a(n):
42.In an economy with no taxes or imports, if the marginal propensity to save is 0.2, the Page 7
We have textbook solutions for you!
The document you are viewing contains questions related to this textbook.
Exploring Economics
The document you are viewing contains questions related to this textbook.
Chapter 20 / Exercise 3
Exploring Economics
Sexton
Expert Verified
marginal propensity to consume must be: A) 0.2 B) 0.8 C) 1.2 D) 0.16
43.In an economy with no taxes or imports, if the marginal propensity to consume is 0.7, the marginal propensity to save must be:
44.In an economy with no taxes or imports, if the marginal propensity to consume increases, the marginal propensity to save will:
45.In an economy with no taxes or imports, if the marginal propensity to save decreases, the marginal propensity to consume will:
46.In an economy with no taxes or imports, if disposable income increases by $1,000 and consumption increases by $600, the marginal propensity to consume is: A) $600. B) $400. C) 1.67. D) 0.60.
47.In an economy with no taxes or imports, if disposable income increases by $1,000 and consumption increases by $600, the marginal propensity to save is:
Page 8
48.In an economy with no taxes or imports, if disposable income increases by $1,000 and consumption increases by $600, the multiplier is:
49.In an economy with no taxes and no imports, disposable income increases from $2,000 to $3,000. If consumption increases from $1,500 to $2,100, the marginal propensity to consume is:
50.In an economy with no taxes and no imports, disposable income increases from $2,000 to $3,000. If consumption increases from $1,500 to $2,100, the marginal propensity to save is: A) $600. B) $400. C) 0.80. D) 0.40.

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture