Exam 13: Aggregate Expenditures

The figure given below represents the saving function of an economy. Figure 9.1 Refer to Figure 9.1.At the real GDP level of $400 billion, which of the following statements is true?

Table 9.2 Refer to Table 9.2.If a firm purchases the machine by taking out a one-year loan, what happens to the firm's rate of return on the investment if the interest rate increases to 10 percent?

The figure given below represents the saving function of an economy. Figure 9.1 Refer to Figure 9.1.Which of the following statements is true for real GDP levels below $400 billion?

The figure given below represents the consumption function of a country. Figure 9.3 Refer to Figure 9.3.If the marginal propensity to consume is equal to 0.3, then:

The net export function is negatively sloped because exports are inversely related to domestic income.

Once macroeconomic equilibrium has been established in an economy, there is no tendency for real GDP to change, even if there is a change in autonomous expenditure.

As capacity utilization in an economy rises:

Which of the following variables is a flow concept?

Identify the correct statement with respect to consumption and saving function.

The 45-degree line used in a consumption function represents:

Any increase in autonomous consumption is associated with:

In the table given below Y represent the aggregate expenditure of the economy on C = consumption, I = investment, G = government projects, and X = net exports. Table 9.3 Refer to Table 9.3.At an income level of $300, the average propensity to save equals:

The marginal propensity to consume (MPC)is equal to the inverse of the marginal propensity to save (MPS).

The table given below reports the consumption expenditure of a nation at different levels of disposable income. Table 9.1 Refer to Table 9.1.The income level of $18, 000 coincides with:

Suppose the marginal propensity to import for country A is 0.4.Calculate the change in total value of imports of the country if national income increases by $100, 000.

Other things equal, when Europeans want to buy more grain from the United States:

When government spending is added to consumption and planned investment, the slope of the aggregate expenditure function increases.

The consumption function becomes flatter if:

The figure given below represents the saving function of an economy. Figure 9.1 Refer to Figure 9.1.When disposable income equals zero:

Suppose that the U.S.trade balance is positive.Hence, when the net export function is added to C+I+G, the slope of the U.S.aggregate expenditures function will become steeper.