What is meant by the term the marginal leakage rate ? a Total leakages as a fraction
Question:
What is meant by the term the marginal leakage rate?
a | Total leakages as a fraction of aggregate expenditures. |
b | Total leakages as a fraction of the level of income. |
c | The ratio of change in income that results from a change in leakages. |
d | The ratio of change in leakages that results from a change in income. |
What is the value of the MPE if MPC = 0.63; MPM = 0.1
a | 0.053 |
b | 0.53 |
c | 0.73 |
d | 0.83 |
What happens to the value of net exports as national income increases?
a | It increases because the level of imports increases. |
b | It decreases because the level of imports increases. |
c | It decreases because the level of imports decreases. |
d | It increases because the level of imports decreases. |
The following partial data relates to a national economy (all figures in $billions):
Y | Total Leakages | Total Injections |
$0 | $0 | $400 |
100 | 40 | 400 |
200 | 80 | 400 |
What is the value of the marginal leakage rate?
a | 0 |
b | 0.4 |
c | 0.6 |
d | 1.67 |
e | 2.5 |
What is the formula for the marginal propensity to expend?
a | ∆ autonomous expenditures/∆ national income |
b | ∆ national income/∆ induced expenditures |
c | ∆ consumption/∆ national income |
d | ∆ aggregate expenditures/∆ national income |
Taxes And Business Strategy A Planning Approach
ISBN: 9780132752671
5th Edition
Authors: Myron Scholes, Mark Wolfson, Merle Erickson, Michelle Hanlon