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.b.falling household debt.c.more optimistic expectations about future disposable income.d.increasing real wealth.e.none of the above.748748748 95469_26_Ch26_p719-752.qxd 14/1/07 3:01 PM Page 7494.If an economy s marginal propensity to consume was 0.75, which of the following is not true?a.The consumption function would have a slope of 0.75.b.The marginal propensity to save would be 0.25.c.Increases in disposable income would increase consumption spending by three times as much as itwould increase saving.d.Consumption will always equal 75 percent of disposable income.e.All of the above would be true.5.Which of the following need not be equal at equilibrium in the Keynesian model?a.income and outputb.aggregate expenditures and outputc.consumption and incomed.All of the above must be equal at equilibrium in the Keynesian model.6.If output was lower than its equilibrium level,a.inventories will exceed their desired level.b.output will rise.c.total expenditures will fall.d.the marginal propensity to consume will rise.7.Output equals incomea.always.b.only in equilibrium.c.only when MPC equals MPS.d.unless inventories are changing.8.In addition to consumption, the major components of aggregate expenditures do not includea.investment.b.saving.c.government purchases.d.net exports.e.All of the above are included in aggregate expenditures.9.When the autonomous level of investment increases,a.at first, inventories will fall below desired levels.b.output will rise.c.consumption spending will rise.d.all of the above will occur.10.Equilibrium output will tend to increase whena.planned investment increases.b.unplanned investment is positive.c.either planned investment increases or unplanned investment is positive.d.either planned investment decreases or unplanned investment is negative.11.Which of the following would increase aggregate expenditures?a.Households become more optimistic about the future.b.Interest rates fall.c.Foreign economies improve.d.Government purchases increase.e.Any of the above would increase aggregate expenditures.12.Which is true regarding the expenditure multiplier?a.It is defined as 1/MPC.b.Its effects take place almost instantaneously.c.The higher the MPC, the greater the expenditure multiplier.749749749 95469_26_Ch26_p719-752.qxd 14/1/07 3:02 PM Page 750d.All of the above are true.e.None of the above is true.13.Equilibrium output would tend to rise whena.autonomous expenditures increase.b.the MPC increases.c.either autonomous expenditures increase or the MPC increases.d.neither autonomous expenditures increase nor the MPC increases.14.If the MPC equals 0.5,a.the expenditure multiplier will equal 2.b.a $5 billion increase in investment would tend to increase output by $10 billion.c.the expenditure multiplier is less than if the MPC = 0.8.d.all of the above are true.15.Investment can depend ona.expectations.b.taxes.c.interest rates.d.current income.e.all of the above.16.Which of the following is negatively related to income?a.net exportsb.government purchasesc.investmentd.consumptione.None of the above is negatively related to income.17.Which of the following would tend to decrease the marginal propensity of aggregate expenditure?a.an increase in the marginal propensity to consumeb.an increase in the marginal propensity to investc.an increase in the marginal propensity of government purchasesd.an increase in the marginal propensity to importe.None of the above would tend to decrease the marginal propensity of aggregate expenditure.18.The expenditure multiplier would tend to increase whenevera.the marginal propensity to invest increased.b.the marginal propensity to consume decreased.c.the marginal propensity of government purchases decreased.d.the marginal propensity to consume increased.e.either a or d occurs.19.If the MPC equaled 0.75, a $100 billion decrease in lump-sum taxes woulda.increase output by $75 billion.b.increase output by $100 billion.c.increase output by $300 billion.d.increase output by $400 billion.e.do none of the above.20.If the MPC equaled 0.75, a $100 billion increase in government purchases, combined with a $100 billionincrease in lump-sum taxes, woulda.increase output by $100 billion.b.increase output by $300 billion.c.increase output by $400 billion.d.increase output by $700 billion.750750 95469_26_Ch26_p719-752.qxd 14/1/07 3:02 PM Page 75121.If the MPC equaled 0.75, a $100 billion increase in government purchases, combined with a $100 billiondecrease in lump-sum taxes, woulda.increase output by $100 billion.b.increase output by $300 billion.c.increase output by $400 billion.d.increase output by $700 billion.22.Which of the following multipliers is greatest?a.the balanced-budget multiplierb.the government purchases multiplierc.the tax multiplierd.They are all the same.23.When the price level falls,a.consumption increases because real wealth increases.b.investment rises because interest rates decline.c.net exports rise because exchange rates decline.d.all of the above are true.24 [ Pobierz całość w formacie PDF ]
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.b.falling household debt.c.more optimistic expectations about future disposable income.d.increasing real wealth.e.none of the above.748748748 95469_26_Ch26_p719-752.qxd 14/1/07 3:01 PM Page 7494.If an economy s marginal propensity to consume was 0.75, which of the following is not true?a.The consumption function would have a slope of 0.75.b.The marginal propensity to save would be 0.25.c.Increases in disposable income would increase consumption spending by three times as much as itwould increase saving.d.Consumption will always equal 75 percent of disposable income.e.All of the above would be true.5.Which of the following need not be equal at equilibrium in the Keynesian model?a.income and outputb.aggregate expenditures and outputc.consumption and incomed.All of the above must be equal at equilibrium in the Keynesian model.6.If output was lower than its equilibrium level,a.inventories will exceed their desired level.b.output will rise.c.total expenditures will fall.d.the marginal propensity to consume will rise.7.Output equals incomea.always.b.only in equilibrium.c.only when MPC equals MPS.d.unless inventories are changing.8.In addition to consumption, the major components of aggregate expenditures do not includea.investment.b.saving.c.government purchases.d.net exports.e.All of the above are included in aggregate expenditures.9.When the autonomous level of investment increases,a.at first, inventories will fall below desired levels.b.output will rise.c.consumption spending will rise.d.all of the above will occur.10.Equilibrium output will tend to increase whena.planned investment increases.b.unplanned investment is positive.c.either planned investment increases or unplanned investment is positive.d.either planned investment decreases or unplanned investment is negative.11.Which of the following would increase aggregate expenditures?a.Households become more optimistic about the future.b.Interest rates fall.c.Foreign economies improve.d.Government purchases increase.e.Any of the above would increase aggregate expenditures.12.Which is true regarding the expenditure multiplier?a.It is defined as 1/MPC.b.Its effects take place almost instantaneously.c.The higher the MPC, the greater the expenditure multiplier.749749749 95469_26_Ch26_p719-752.qxd 14/1/07 3:02 PM Page 750d.All of the above are true.e.None of the above is true.13.Equilibrium output would tend to rise whena.autonomous expenditures increase.b.the MPC increases.c.either autonomous expenditures increase or the MPC increases.d.neither autonomous expenditures increase nor the MPC increases.14.If the MPC equals 0.5,a.the expenditure multiplier will equal 2.b.a $5 billion increase in investment would tend to increase output by $10 billion.c.the expenditure multiplier is less than if the MPC = 0.8.d.all of the above are true.15.Investment can depend ona.expectations.b.taxes.c.interest rates.d.current income.e.all of the above.16.Which of the following is negatively related to income?a.net exportsb.government purchasesc.investmentd.consumptione.None of the above is negatively related to income.17.Which of the following would tend to decrease the marginal propensity of aggregate expenditure?a.an increase in the marginal propensity to consumeb.an increase in the marginal propensity to investc.an increase in the marginal propensity of government purchasesd.an increase in the marginal propensity to importe.None of the above would tend to decrease the marginal propensity of aggregate expenditure.18.The expenditure multiplier would tend to increase whenevera.the marginal propensity to invest increased.b.the marginal propensity to consume decreased.c.the marginal propensity of government purchases decreased.d.the marginal propensity to consume increased.e.either a or d occurs.19.If the MPC equaled 0.75, a $100 billion decrease in lump-sum taxes woulda.increase output by $75 billion.b.increase output by $100 billion.c.increase output by $300 billion.d.increase output by $400 billion.e.do none of the above.20.If the MPC equaled 0.75, a $100 billion increase in government purchases, combined with a $100 billionincrease in lump-sum taxes, woulda.increase output by $100 billion.b.increase output by $300 billion.c.increase output by $400 billion.d.increase output by $700 billion.750750 95469_26_Ch26_p719-752.qxd 14/1/07 3:02 PM Page 75121.If the MPC equaled 0.75, a $100 billion increase in government purchases, combined with a $100 billiondecrease in lump-sum taxes, woulda.increase output by $100 billion.b.increase output by $300 billion.c.increase output by $400 billion.d.increase output by $700 billion.22.Which of the following multipliers is greatest?a.the balanced-budget multiplierb.the government purchases multiplierc.the tax multiplierd.They are all the same.23.When the price level falls,a.consumption increases because real wealth increases.b.investment rises because interest rates decline.c.net exports rise because exchange rates decline.d.all of the above are true.24 [ Pobierz całość w formacie PDF ]