Exam 10: Basic Macroeconomic Relationships

(Advanced analysis) Refer to the given consumption schedules. DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. When plotted on a graph, The vertical intercept of the consumption schedule in economy (3) is _____ and the slope is _____.

Tessa's break-even income is $10,000, and her MPC is 0.75. If her actual disposable income is $16,000, her level of

The consumption schedule shows

When we draw an investment demand curve, we hold constant all of the following except

If the marginal propensity to consume is 0.9, then the marginal propensity to save must be

An increase in disposable income

Refer to the consumption schedule shown in the graph. As income falls from level 3 to level 2, the amount of

A high rate of inflation is likely to cause a

Disposable Income Consumption \ 0 \ 8 80 80 160 152 240 224 320 296 400 368 The disposable income (DI) and consumption (C) schedules are for a private, closed economy. All ?gures are in billions of dollars. The marginal propensity to save in this economy is

Which one of the following will cause a movement down along an economy's consumption schedule?

The multiplier is useful in determining the

As disposable income decreases, the

The greater is the marginal propensity to consume, the