Table 9.1 \[\begin{array} { | l | c | } \hline \begin{array} { c } \text { Disposable Income } \\ \text { (Billions of dollars per year) } \end{array} & \begin{array} { c } \text { Total Consumption } \\ \text { (Billions of dollars per year) } \end{array} \\ \hline \text { \$0 } & \$ 50 \\ \hline 200 & 210 \\ \hline \end{array}\] What is the rate of saving when income equals $300 billion in Table 9.1?

A) Zero. B) $50 billion. C) $10 billion. D) -$290 billion. A) Zero. B) $50 billion. C) $10 billion. D) -$290 billion.

A) Would cause a depletion of inventories. B) Would occur if total output were less than aggregate demand. C) Is the amount by which the rate of actual spending falls short of full-employment GDP. D) Is the amount by which total spending exceeds GDP. A) Would cause a depletion of inventories. B) Would occur if total output were less than aggregate demand. C) Is the amount by which the rate of actual spending falls short of full-employment GDP. D) Is the amount by which total spending exceeds GDP.

Table 9.1 \[\begin{array} { | l | c | } \hline \begin{array} { c } \text { Disposable Income } \\ \text { (Billions of dollars per year) } \end{array} & \begin{array} { c } \text { Total Consumption } \\ \text { (Billions of dollars per year) } \end{array} \\ \hline \text { \$0 } & \$ 50 \\ \hline 200 & 210 \\ \hline \end{array}\] What is the marginal propensity to save in Table 9.1?

A) 0.05. B) 0.80. C) 0.20. D) 0.24. A) 0.05. B) 0.80. C) 0.20. D) 0.24.

Refer to Table 9.2.(Data are expressed in billions of dollars. ) Table 9.2 $\begin{array}{|r|r|r|c|c|} \hline \begin{array}{r} \text { Full Employment } \\ \text { Income (Output) } \end{array} & \begin{array}{c} \text { Consumers } \\ \text { Desire to Spend } \end{array} & \begin{array}{c} \text { Investors Desire } \\ \text { to Spend } \end{array} & \begin{array}{c} \text { Total Private } \\ \text { Spending } \end{array} & \begin{array}{c} \text { Total } \\ \text { Saving } \end{array} \\ \hline \$ 500 & \$ 300 & \$ 250 & \$ & \$ \\ \hline 600 & 375 & 250 & \$ & \$ \\ \hline 700 & 450 & 250 & \$ & \$ \\ \hline 800 & 525 & 250 & \$ & \$ \\ \hline \end{array}$ If the full-employment level of income (YF)in Table 9.2 is $800 billion,

A) The economy is in equilibrium. B) There is a recessionary gap of $25 billion. C) There is an inflationary gap of $250 billion. D) There is a recessionary gap of $275 billion. A) The economy is in equilibrium. B) There is a recessionary gap of $25 billion. C) There is an inflationary gap of $250 billion. D) There is a recessionary gap of $275 billion.

A) The change in total consumption divided by the change in total disposable income. B) The change in total saving divided by the change in total disposable income. C) Total consumption divided by total disposable income. D) Total saving divided by total disposable income. A) The change in total consumption divided by the change in total disposable income. B) The change in total saving divided by the change in total disposable income. C) Total consumption divided by total disposable income. D) Total saving divided by total disposable income.