Question 1

1pts

Which would shift the consumption schedule to the right (increase)?

Group of answer choices

Consumer expectations of falling prices

Consumer expectations of product surpluses

An increase in wealth

No answer text provided.

Flag this Question

Question 2

1pts

As disposable income increases,

Group of answer choices

consumption decreases and saving increases

consumption increases and saving decreases

consumption and saving both decreases

consumption and saving both increases

Flag this Question

Question 3

1pts

As disposable income goes up the:

Group of answer choices

APC falls.

volume of consumption declines absolutely.

APS falls.

volume of investment diminishes.

Flag this Question

Question 4

1pts

As level of investment increases, expected rate of returns from investment:

Group of answer choices

no change.

can't determine.

decreases.

increases.

Flag this Question

Question 5

1pts

The average propensity to save (APS) at breakeven level of income is:

Group of answer choices

0

equal to MPS

equal to APC

1

Flag this Question

Question 6

1pts

Suppose marginal propensity to save for the economy is 0.2. The slope of the consumption schedule is ________________________

Group of answer choices

1.8

1.2

0.2

0.8

Flag this Question

Question 7

1pts

Assume following table represents an economy with marginal propensity to save is 0.25. The breakeven level of income is:

Disposable income

Consumption

Saving

100

125

200

300

Group of answer choices

300

100

200

400

Flag this Question

Question 8

1pts

In the graph below breakeven level if disposable income is:

Group of answer choices

200

50

150

100

Flag this Question

Question 9

1pts

Assume the marginal propensity to consume is 0.75. Multiplier in this economy is equal to:

Group of answer choices

0.25

0.75

1.33

4

Flag this Question

Question 10

1pts

Assume the marginal propensity to consume is 0.8. If consumers' initial spending decreases by $25 billion. The real GDP in this economy will decrease by:

Group of answer choices

200

125

100

150