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

In the saving function,autonomous saving is

Figure 3-7 -In Figure 3-7 above,a $250 increase in AP causes

Figure 3-6 -In Figure 3-6 above,income and planned expenditure are equal at

If the MPS is 0.1 and the income tax rate is 0.33 the marginal leakage rate for a closed economy is

The IS curve plots for each level of income the ________ that causes income to equal ________.

In the simple Keynesian model of the determination of income,planned investment is

The one type of expenditure that we assume can differ from what spenders have planned is

Figure 3-7 -In Figure 3-7 above,if the natural real GDP is $2500,AP = $250,and the change in "a" = change in I = change in NX = 0,then the natural real GDP could be attained with a

If the expected earnings of an investment project exceed all expenses except interest payments,

Figure 3-5 -In Figure 3-5 above,saving is positive at

Figure 3-1 -Employing Figure 3-1 above,autonomous consumption expenditures are ________,and the marginal propensity to consume is ________.

During the worst of the Great Depression,in 1932 and 1933,disposable income was so low that it actually ________ aggregate consumption,so that aggregate saving became ________.

Should autonomous consumption fall by one dollar,the effect of this on equilibrium income can be offset if government expenditure

Which of the components of total planned autonomous spending has a negative multiplier,and one which is lower in absolute value than the multiplier of the others?

Saving is positive for all levels of disposable income

Equilibrium income equals planned autonomous spending

Figure 3-5 -In Figure 3-5 above,the saving function is

Figure 3-7 -In Figure 3-7 above,the marginal propensity to save is

Since income tax revenues will rise (fall)as expenditures and output increase (decrease)the income tax results in

Figure 3-6 -In Figure 3-6 above,income and actual expenditures are equal at