Exam 9: Aggregate Demand.

The slope of the consumption function equals the marginal propensity to consume.

The current level of investment depends on the current level of income.

A household that expects a decrease in disposable income in the future will _____

If the simple spending multiplier is 8, the marginal propensity to consume (MPC) is _____

An increase in income in other countries, other things equal, would cause U.S. _____

On a graph showing investment along the vertical axis and income along the horizontal axis, _____

The fraction of an increase in income that is saved is referred to as the _____

If incomes in the United States increase, other things equal, then U.S. _____

What was a result of China's "one-child policy"?

Which of the following will shift the consumption function upward?

If consumption is greater than income, saving must be negative.

If the marginal propensity to consume (MPC) is positive and less than one, an increase in disposable income will _____.

Table 9.1 Table 9.1 Disposable Income (\ ) Consumption (\ ) 1,000 800 1,100 880 1,200 960 1,300 1,040 1,400 1,120 -Refer to Table 9.1, which shows the disposable income and consumption of a household. Saving _____

Linda earned an income of $3,000 per month, which has now increased to $3,500 per month. She saves 10 percent and spends the remainder on food, lodging and other expenses. So far, she has managed to save $20,000. What is her marginal propensity to save (MPS)?

In the income-expenditure framework, if planned aggregate expenditures are greater than real gross domestic product (GDP), _____

If income increases by $100 and saving increases by $25, the slope of the consumption function equals _____.

A decrease in disposable income will _____

If the market interest rate decreases, then there will _____

When the current production of goods and services in an economy is greater than planned aggregate expenditure, _____

The larger the marginal propensity to save, other things constant, _____