True or False:
1. If your disposable income increased by $10,000 and as a result, your consumption spending increased by $8,000, you would have a marginal propensity to consume of 0.8.
2. The higher is MPC, the lower is MPS.
3. If your MPC was equal to 0.5, your MPS would also be 0.5.
4. The greater is the MPS, the steeper is the slope of the consumption function.
5. When your disposable income rises, both your total consumption and your total saving rise.
6. Aggregate expenditures always equal consumption expenditures.
7. Income equals output in the economy only in equilibrium.
8. When output is greater than the equilibrium level, inventories would build up above desired levels and producers would reduce output.