Multiple Choice
Each of the following is a key question which chapter 6 seeks to answer except
A) What determines the level of net exports?
B) What determines the level of consumption spending?
C) What determines the inflation rate?
D) What determines the level of investment spending?
Correct Answer:
Verified
Correct Answer:
Verified
Q46: The marginal propensity to consume (MPC, C<sub>y</sub>)<br>A)
Q47: Fluctuations in economy-wide investment spending have two
Q48: One's transitory income is<br>A) the average level
Q49: Some of the variables on which net
Q50: The investment function is<br>A) I<sub>0</sub> + I<sub>r</sub>
Q52: The flexible-price assumption means that<br>A) prices and
Q53: The Classical assumptions of the macroeconomy include
Q54: The value of C<sub>y</sub>, the MPC,<br>A) is
Q55: Net exports will _ if _ increase(s).<br>A)
Q56: Governments seeking to boost investment spending<br>A) can