Exam 11: Aggregate Expenditure

In order to accurately capture the multiplier effect, it is important to know:

Which of the following could be a direct cause of investment spending increasing?

How would the real exchange rate need to change to get aggregate expenditure to increase?

The spending multiplier:

What type of relationship do business taxes have with respect to Investment spending?

During the Great Depression in the 1930s the banking industry was crippled so badly that nearly _____ of the banks failed.

Autonomous expenditure is spending that is:

Which of the following is not a determinant of Investment spending?

If spending increased by $250, and the GDP decreased $1,000 as a result, the MPC must be:

In Figure 1 above if the economy were at Y3 then we would expect there to be:

Using Figure 3 above the distance between what 2 lines illustrate a recessionary output gap?

If the marginal propensity to consume was 0.9, it would mean that:

A main reason the federal government may choose to spend would be the:

If the MPC = 0.75, then the spending multiplier must be:

The multiplier effect suggests that:

If spending increased by $200, and the GDP increased $1,000 as a result, the MPC must be:

If tastes for foreign goods and services go up, then we would expect aggregate expenditure to:

If spending increased by $100, and the GDP increased $400 as a result, the MPC must be:

If trade policies change, then we would expect aggregate expenditure to:

Domestic income has a ______ relationship with net export spending.