The consumption schedule shows a direct relationship between

the consumption schedule shows a direct relationship between

List four factors that could shift the consumption schedule. 4. Suppose (d) In graph A, what has caused the movement from point A to point B on line A2? (e) If there is .. The relationship between MPC and the multiplier is direct. As the MPC. The consumption schedule shows A a direct relationship between aggregate from ECON 1A at Pasadena City College. The consumption schedule shows. A. a direct relationship between aggregate consumption and accumulated wealth. B. a direct relationship between aggregate.

A movement from a to b along C1 might be caused by a: D increase in real GDP. The investment demand slopes downward and to the right because lower real interest rates: A expand consumer borrowing, making investments more profitable.

B boost expected rates of returns on investment. C enable more investment projects to be undertaken profitably. D create tax incentives to invest. The expected rate of return on this tool is: Other things equal, a 10 percent decrease in corporate income taxes will: A decrease the market price of real capital goods.

the consumption schedule shows a direct relationship between

B have no effect on the location of the investment-demand curve. C shift the investment-demand curve to the right. D shift the investment-demand curve to the left.

Which of the following would shift the investment demand curve from ID1 to ID3? A a lower interest rate B lower expected rates of return on investment C a higher interest rate D higher expected rates of return on investment A reduces the MPC.

B magnifies changes in spending into larger changes in output and income. C promotes stability of the general price level.

  • 1. If Carol's disposable income increases from $1,200 to $1,700 and

D lessens upswings and downswings in business activity. If the marginal propensity to save is 0. If the dollar appreciates relative to foreign currencies, we would expect: A the multiplier to decrease. B a country's exports and imports to both fall.

c+i+g+(xm) practice exam

C a country's net exports to rise. D a country's net exports to fall If the United States wants to increase its net exports, it might take steps to: A increase its GDP. B reduce existing tariffs and import quotas. The consumption and saving schedules reveal that the: Alshriaan Ch 8 review a. MPC is greater than zero, but less than one. APS is positive at all income levels. MPC is equal to or greater than one at all income levels. The size of the MPC is assumed to be: As disposable income increases, consumption: The relationship between consumption and disposable income is such that: If the MPC is.

The MPC for an economy is: Suppose a family's consumption exceeds its disposable income. This means that its: MPC is greater than 1. APC is greater than 1. Alshriaan Ch 8 review c. Which of the following relations is not correct?

the consumption schedule shows a direct relationship between

At the point where the consumption schedule intersects the degree line: The saving schedule is such that as aggregate income increases by a certain amount saving: If the marginal propensity to consume is. B Use the following to answer questions Refer to the above data.

The marginal propensity to consume is: Alshriaan Ch 8 review Answer: Refer to the above diagram. The average propensity to consume is 1 at point: The marginal propensity to consume is equal to: At income level F the volume of saving is: Consumption will be equal to income at: The economy is dissaving: Use the following to answer questions The above figure suggests that: Refer to the above figure.

c+i+g+(xm) practice exam

If the relevant saving schedule were constructed: A Answer the next question s on the basis of the following data for a hypothetical economy. Alshriaan Ch 8 review If plotted on a graph, the slope of the saving schedule would be: C Use the following to answer questions The marginal propensity to save is equal to: At disposable income level D, the average propensity to save is equal to: At disposable income level D, consumption is: B Use the following to answer questions: Answer the next question s on the basis of the following consumption schedules.

DI signifies disposable income and C represents consumption expenditures. All figures are in billions of dollars. The marginal propensity to consume in economy 1 is: The marginal propensity to consume: The marginal propensity to save: Alshriaan Ch 8 review d.

the consumption schedule shows a direct relationship between

Advanced analysis Refer to the above data. We can conclude that the: The investment demand curve will shift to the right as a result of: The investment demand curve will shift to the left as a result of: If the real interest rate in the economy is i and the expected rate of return from additional investment is r, then more investment will be forthcoming when: A rightward shift of the investment demand curve might be caused by: The real interest rate is: When we draw an investment demand curve we hold constant all of the following except: If the nominal interest rate is 18 percent and the real interest rate is 6 percent, the inflation rate is: If the inflation rate is 10 percent and the real interest rate is 12 percent, the nominal interest rate is: A high rate of inflation is likely to cause a: If the real interest rate in the economy is i and the expected rate of return on additional investment is r, then other things equal: