Answer the question on the basis of the following data for a hypothetical economy. $\begin{array}{cc} \underline{\text { Disposable Income} } &\underline{ \text { Saving } }\\ 0& \mathbf{- 1 0} \\ 50 & 0 \\ 100 & 10 \\ 150 & 20 \\ 200 & 30 \end{array}$ Refer to the given data.If plotted on a graph,the slope of the saving schedule would be:

A) .80. B) .10. C) .20. D) .15. A) .80. B) .10. C) .20. D) .15.

Exam 29: Basic Macroeconomic Relationships

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Assume there are no prospective investment projects (I)that will yield an expected rate of return (r)of 25 percent or more,but there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent,an additional $5 billion between 15 and 20 percent,and so on.If the real interest rate is 15 percent in this economy,the aggregate amount of investment will be:

(Multiple Choice)

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Question 21

The slope of the consumption schedule is measured by the MPC.

(True/False)

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Question 22

If the MPC is constant at various levels of income,then the APC must also be constant at all of those income levels.

(True/False)

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Question 23

The multiplier effect means that:

(Multiple Choice)

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Question 24

As disposable income increases,consumption:

(Multiple Choice)

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Question 25

A decline in the real interest rate will:

(Multiple Choice)

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Question 26

The average propensity to consume is defined as income divided by consumption.

(True/False)

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Question 27

The consumption schedule is drawn on the assumption that as income increases,consumption will:

(Multiple Choice)

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Question 28

Answer the question on the basis of the following data for a hypothetical economy. 0 50 0 100 10 150 20 200 30 Refer to the given data.If plotted on a graph,the slope of the saving schedule would be:

(Multiple Choice)

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Question 29

Answer the question on the basis of the following table that illustrates the multiplier process. Refer to the given table.The marginal propensity to consume is:

(Multiple Choice)

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Question 30

If a $50 billion decrease in investment spending causes income to decline by $50 billion in the first round of the multiplier process and by $25 in the second round,the multiplier in the economy is:

(Multiple Choice)

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Question 31

The consumption and saving schedules reveal that the:

(Multiple Choice)

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Question 32

One can determine the amount of any level of total income that is consumed by:

(Multiple Choice)

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Question 33

Which of the following will not cause the consumption schedule to shift?

(Multiple Choice)

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Question 34

Art Buchwald's article "Squaring the Economic Circle" is a humorous description of:

(Multiple Choice)

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Question 35

The multiplier effect indicates that:

(Multiple Choice)

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Question 36

Other things equal,if the real interest rate falls and business taxes rise:

(Multiple Choice)

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Question 37

A rightward shift of the investment demand curve might be caused by:

(Multiple Choice)

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Question 38

As disposable income goes up,the:

(Multiple Choice)

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Question 39

The investment demand curve will shift to the right as the result of:

(Multiple Choice)

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Question 40

Showing 21 - 40 of 150

The slope of the consumption schedule is measured by the MPC.

If the MPC is constant at various levels of income,then the APC must also be constant at all of those income levels.

The multiplier effect means that:

As disposable income increases,consumption:

A decline in the real interest rate will:

The average propensity to consume is defined as income divided by consumption.

The consumption schedule is drawn on the assumption that as income increases,consumption will:

Answer the question on the basis of the following data for a hypothetical economy. 0 50 0 100 10 150 20 200 30 Refer to the given data.If plotted on a graph,the slope of the saving schedule would be:

Answer the question on the basis of the following table that illustrates the multiplier process. Refer to the given table.The marginal propensity to consume is:

If a $50 billion decrease in investment spending causes income to decline by $50 billion in the first round of the multiplier process and by $25 in the second round,the multiplier in the economy is:

The consumption and saving schedules reveal that the:

One can determine the amount of any level of total income that is consumed by:

Which of the following will not cause the consumption schedule to shift?

Art Buchwald's article "Squaring the Economic Circle" is a humorous description of:

The multiplier effect indicates that:

Other things equal,if the real interest rate falls and business taxes rise:

A rightward shift of the investment demand curve might be caused by:

As disposable income goes up,the:

The investment demand curve will shift to the right as the result of:

Income Inequality Poverty and Discrimination

Health Care

Immigration

An Introduction to Macroeconomics

Measuring Domestic Output and National Income

Economic Growth

Business Cycles, Unemployment, and Inflation

The Aggregate Expenditures Model

Aggregate Demand and Aggregate Supply

The Balance of Payments, Exchange Rates, and Trade Deficits

Money, Banking, and Financial Institutions

Money Creation

Interest Rates and Monetary Policy

Financial Economics

Extending the Analysis of Aggregate Supply

Current Issues in Macro Theory and Policy

International Trade

The Balance of Payments, Exchange Rates, and Trade Deficits

The Economics of Developing Countries

The United States and the Global Economy

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