Exam 10: Basic Macroeconomic Relationships

The greater is the marginal propensity to consume:

Suppose the consumption schedule is: C = 20 + .9Y,where C is consumption and Y is disposable income. -Refer to the above data.At an $800 level of disposable income,the level of saving is:

-Refer to the above data.At the $200 level of disposable income:

-Refer to the above diagram.At income level F the volume of saving is:

-Refer to the above diagram.The marginal propensity to consume is:

The MPC for an economy is:

The most important determinant of consumption and saving is the:

Which of the following equations represents the saving schedule implicit in the data below?

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

Suppose that a new machine tool having a useful life of only one year costs $80,000.Suppose,also,that the net additional revenue resulting from buying this tool is expected to be $96,000.The expected rate of return on this tool is:

If the consumption schedule is linear,then the:

If the MPC is .6,the simple multiplier will be:

The following table illustrates the multiplier process in a private closed economy: -Refer to the above table.The marginal propensity to save is:

A high rate of inflation is likely to cause a:

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

-Refer to the above diagram.The marginal propensity to save is equal to:

-Refer to the above diagram.At disposable income level D,consumption:

The simple multiplier is:

The reverse wealth effect will tend to decrease consumption and increase saving.

If a $100 billion decrease in investment spending causes income to decline by $100 billion in the first round of the multiplier process and by $75 billion in the second round,income will eventually decline by: