Exam 12: Consumption, real GDP, and the Multiplier

Suppose the marginal propensity to consume (MPC)is 0.9 and there is a $3,000 increase in planned investment.Given this information,real GDP will increase by

The equation is the

Because a decrease in real autonomous spending results in a ________ in the price level,the ultimate effect on real GDP is ________ that predicted by the multiplier.

-Refer to the above figure.If real disposable income is $30,000,saving is

When the average propensity to save (APS)is 0.20,then this means

-Refer to the above table.The table gives the combinations of real disposable income and real consumption for a college student for a year.What does planned real saving equal when real disposable income equals $6,000?

Total planned expenditures in a closed economy are equal to

As real disposable income increases,consumption expenditures

According to Keynes,

A rise in the price level causes

If the marginal propensity to save (MPS)increases,the multiplier

Aging baby-boomers,predisposed to hearing loss because of years of listening to loud music,are now approaching the age range in which hearing loss starts to become apparent.What effect does this have on investment spending within the hearing aid industry?

An increase in the marginal propensity to save (MPS)

It is conceivable that the APC,APS,MPC,and MPS could simultaneously be

The investment function is represented by

A permanent increase in autonomous investment causes

If real disposable income increases,the average propensity to consume will

One of the primary determinants of planned real investment spending is the

In economics,the term "autonomous" means

Planned expenditures equal real disposable income