Exam 9: Aggregate Expenditure

The marginal propensity to consume is the fraction of a change in income that is saved.

The non-income determinants of consumption include all of the following except one.Which is the exception?

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

If business managers become more pessimistic about future sales and profits,there will be

The marginal propensity to consume measures the change in consumption divided by the change in income.

Which of the following would not shift the consumption function?

Which of the following would not shift the consumption function downward?

An increase in the interest rate will increase consumption spending.

Which of the following would be most likely to cause a rightward shift of the investment demand curve?

A decline in the interest rate,other things constant,shifts the investment function downward.

As domestic income rises,net exports

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

Autonomous consumption expenditures are

As the U.S.price level decreases,other things equal,U.S.products become

As disposable income increases,consumption spending

Which of the following would not shift the consumption function?

A decrease in the price level decreases net wealth and increases consumption spending.

All of the following,except one,are characteristics of the government purchase function.Which is the exception?

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

An increase in the value of the U.S.dollar in world markets,other things constant,would increase the demand for U.S.exports.