Exam 12: Consumption, real GDP, and the Multiplier

Suppose the marginal propensity to consume (MPC)is 0.8 and there is a $4,000 increase in planned investment.Given this information,real GDP will increase by

What is the primary determinant of real saving and real consumption according to Keynes? Explain.

-According to the above table,the value of the MPC is

If the marginal propensity to consume (MPC)is 0.9,then the multiplier for a change in autonomous spending will be

-In the above figure,when real disposable income equals 600

Which of the following statements is true?

The multiplier is

The larger the marginal propensity to consume,

-Refer to the above figure.Line ABC is called

By definition,disposable income is equal to

-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 is the value of the marginal propensity to consume?

The multiplier is the ratio of the

If the marginal propensity to consume (MPC)is 0.75,what is the value of the multiplier?

A higher price level causes

If the MPS is one-third,a $100 increase in net exports will

The break-even point refers to

The larger is the marginal propensity to consume (MPC),

If the MPC = 0.8,and planned autonomous investment increases by $80 billion,then equilibrium real GDP will increase by

An increase in planned real investment spending causes

-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 is the value of the average propensity to consume when real disposable income equals $4,000?