Exam 12: Consumption, real GDP, and the Multiplier

Refer to the above figure.If real disposable income is less than $5,000,then saving is

At a level of real disposable income of 0,consumption is $4000.Then

-Consider the above figure.The equation for the consumption function is

Which of the following theories predicts that current consumption increases when a person expects an increase in future income?

Nonconsumable goods that firms use to make other goods are

The average propensity to consume is

The size of the multiplier depends on

-Use the above table.At an income of $150,

Suppose the marginal propensity to consume (MPC)is 0.8 and there is a $2,000 increase in autonomous consumption.Given this information,real GDP will increase by

According to Keynes,the most important determinant of an individual's real saving is

The average propensity to consume is the

The marginal propensity to consume is calculated by

A situation in which spending exceeds income is

The marginal propensity to consume is

-According to the above table,if real Gross Domestic Product (GDP)is $30,000,planned saving equals

-Refer to the above figure.The figure represents the consumption function for a consumer.Point C represents

Dissaving is

All of the following will shift the consumption function EXCEPT

-According to the above table,as the level of real disposable income increases,

-Refer to the above figure.Dissaving occurs,