Exam 17: The Determination of National Output and the Keynesian Multiplier

The following question are based on the following information: -If intended spending falls short of the total value of final goods and services produced

The income expenditure model is most relevant when

The average propensity to consume is the

A marginal propensity to consume of 0.8 means the value of the multiplier is

Increases in the rate of interest

If Carolyn's consumption rises by $5,000 as her income increases from $26,000 to $32,000 per year,her marginal propensity to consume is

If output determines income and income determines spending

The following question are based on the following information: -The equilibrium value of GDP is ________ billion.

If the marginal propensity to consume is 0.6,a $1.2 billion increase in intended investment will increase equilibrium GDP by ________ billion.

Which of the following best expresses the relationship between the marginal propensity to consume (MPC )and the average propensity to consume (APC )?

The following question are based on the following information for a society: -If disposable income is $1,900 billion,saving is ________ billion.

Which of the following was the most important force in bringing an end to the Great Depression?

Another name for the income expenditure model is the

The expression 1/MPS is called

One reason for the volatility of investment is that

If the morning paper reports that Americans,for the sixth month in a row,tend to spend more money and save less,these events would be depicted in an income expenditures model as

If disposable income rises by $100 billion and personal consumption expenditure rises by $60 billion,what is the marginal propensity to save?

According to John Maynard Keynes and his followers,GDP is dependent mainly on

Keynes disagreed with the classical model because he felt that

If the marginal propensity to save is 0.6,a $1.2 billion increase in intended investment will increase equilibrium GDP by ________ billion.