Exam 29: Basic Macroeconomic Relationships

(Advanced analysis)Answer the question on the basis of the following data: Disposable Income Consumption (C) \ 0 \ 40 100 100 200 160 300 220 400 280 Which of the following equations represents the saving schedule implicit in the given data?

Answer the question on the basis of the following consumption schedules.DI signifies disposable income and C represents consumption expenditures.All figures are in billions of dollars. Refer to the given data.Suppose that consumption decreased by $2 billion at each level of DI in each of the three countries.We can conclude that the:

Suppose a family's consumption exceeds its disposable income.This means that its:

Which of the following relations is not correct?

(Advanced analysis)Answer the question on the basis of the following consumption schedule: C = 20 + .9Y,where C is consumption and Y is disposable income. Refer to the given data.The MPC is:

Assume the economy's consumption and saving schedules simultaneously shift downward.This must be the result of:

The investment demand curve suggests:

The real interest rate is:

When we draw an investment demand curve,we hold constant all of the following except:

If the marginal propensity to save is 0.2 in an economy,a $20 billion rise in investment spending will increase:

If Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100,her marginal propensity to:

If the real interest rate in the economy is i and the expected rate of return on additional investment is r,then other things equal:

The multiplier applies to:

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.The marginal propensity to consume is:

If Trent's MPC is .80,this means that he will:

The greater is the marginal propensity to consume,the:

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

The consumption schedule directly relates:

The MPC can be defined as that fraction of a:

Answer the question on the basis of the following table that illustrates the multiplier process. Refer to the given table.The total change in consumption resulting from the initial change in investment will be: