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

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

The following question are based on the following information for a society: -If disposable income increases from $1,900 to $2,000 billion,the marginal propensity to consume is

A marginal propensity to save of 0.32 implies that the marginal propensity to consume is

The following question are based on the following diagram: -At equilibrium the amount of investment spending would be ________ billion.

The average propensity to consume equals the

If interest rates on consumer loans rise,the

The following question are based on the following consumption function for a hypothetical economy. Assume autonomous intended investment is $200 billion and there are no government expenditures, exports, or imports. -If intended investment increases from 200 to 250,GDP will rise by ________ billion.

The consumption function expresses the relationship between consumption spending and

The following question are based on the following rates-of-return table for five independent investment projects: -A 3-percentage-point increase in the interest rate might result in canceling the decision to undertake project

The 45-degree line represents points of equality between

The slope of the consumption function is equal to the

An upward shift in the consumption function must

If an economy is operating at a point on the C + I line that lies below the 45-degree line

Which of the following could cause equilibrium GDP to fall?

An autonomous investment change of $2 billion in the first stage,with a multiplier of 2,leads to extra income in the third stage of ________ billion.

If total intended spending is greater than GDP

An increase in autonomous investment spending initially produces an equal

The interest rate

The irregularity of the innovation rate

Autonomous changes in intended investment