Exam 13: Aggregate Expenditures

Suppose total disposable income in Country X rises by $500 billion while total consumption rises by $50 billion.What would be the slope of the consumption function for this nation?

Which of the following is a determinant of investment?

A change in consumption caused by a change in disposable income is shown by:

The figure given below represents the consumption function of a country. Figure 9.3 Refer to Figure 9.3.We can infer that the marginal propensity to save would be _____.

The United States introduced investment tax credit in 1962 and has continued to offer it till date.This has reduced the volatility of investments in the country.

When disposable income is zero, consumption is also zero.

A change in the marginal propensity to save can be graphically represented by:

Which of the following factors will not affect the profit expectations of business firms and change the level of investment?

At the point where consumption equals disposable income, the average propensity to consume equals 1.

Which of the following is a stock variable?

The net export function illustrates that:

The figure given below represents the consumption function of a country. Figure 9.3 Refer to Figure 9.3.Calculate the marginal propensity to consume.

If capacity utilization by businesses remains constant, investment spending is likely to be the most volatile component of aggregate expenditures in the United States.

The sum of money spent by a person to purchase of a new home is considered as a part of investment spending.

If a household experiences a $880 increase in consumption with a $1, 100 increase in disposable income, what is the slope of that household's saving function?