Exam 3: Income and Interest Rates: the Keynesian Cross Model and the Is Curve

If planned investment changes as interest rates change,then

Figure 3-4 -In Figure 3-4 above,the multiplier is

Figure 3-3 -In Figure 3-3 above,equilibrium income is

Income on the horizontal axis at which the vertical distance to the 45-degree line is less than the vertical distance to the Ep line gives rise to a ________ amount of unplanned inventory investment,and thus ________ pressure on output.

Where the planned expenditure and the 45-degree lines intersect,the economy is ________ equilibrium,with unplanned inventory investment equal to ________.

A falling interest rate ________ the number of investment projects having a positive profit rate,and thus ________ the amount of output that firms demand for themselves.

During a recession,automatic stabilization causes the government budget deficit to

If Ep is 3500 and Y is 3000,then companies will

Since business firms will undertake a project whose rate of return exceeds the present level of interest rates,when interest rates

The portion of net exports determined by income in foreign countries is

Income on the horizontal axis at which the vertical distance to the 45-degree line is less than the vertical distance to the Ep line gives rise to ________-than-equal planned expenditures,and so we must be ________ the equilibrium level of income.

During the 20th century,the highest savings rates in the U.S.were observed during

Figure 3-7 -In Figure 3-7 above,if natural real GDP = $2500,AP = $250,and the change in "a" = change in I = change in NX = 0,the tax cut required to achieve then natural real GDP is

If planned autonomous investment is 500,autonomous consumption 300,induced consumption 2500,savings 500,and government spending and taxes zero,then

In an economy described by the assumptions of the simple Keynesian Model,the impact of fluctuations in autonomous investment on consumption spending could be

Assuming a simple Keynesian multiplier,and given an increase in planned investment of $100 billion,the effect on total output will be greater than $100 billion only if the

In the four-part diagram used to construct the IS curve,a decrease in the interest rate causes

During recent Global Economic Crises,U.S.household liabilities have

If Y = income,G = government spending,T = autonomous taxes,and t = income tax rate,then the government budget deficit can be expressed as

Total income is always equal to ________ expenditures;but only in equilibrium is it equal to ________ expenditures,producing in equilibrium ________ on income to change.