Ekonomi Makro 1

Ekonomi Makro 1

Lets Do the quiz

Multiple Choice

If consumption and disposable income are equal at a particular level of income:

• the MPC must be one at this point

• the MPS must be zero at this point

• the APC must be less than one at this point

• saving must be zero at this point

Multiple Choice

Suppose that for the entire economy, no investment projects will yield an expected real return of more than 12%. However, $10 billion worth of projects will yield expected real returns of 9.1% to 12%, an additional $10 billion will yield expected real returns of 6.1% to 9%, an additional $10 billion will yield expected real returns of 3.1% to 6%, and an additional $10 billion will yield expected real returns of 0% to 3%. If the real rate of interest is 6%, desired investment spending will be:

• $0 billion

• $10 billion

• $20 billion

• $30 billion

Multiple Choice

The investment demand curve will shift to the left if:

• the interest rate decreases

• the interest rate increases

• expected returns on investment increase

• business taxes increase

Multiple Choice

Which of the following might have caused the shift from consumption schedule C1 to schedule C2?

• An increase in disposable income

• An increase in household wealth

• An increase in household debt

• An increase in taxes

Multiple Choice

Suppose the MPC is ¾. If investment spending falls by $10 billion, the level of GDP will:

• fall by $40 billion

• fall by $30 billion

• fall by $10 billion

• fall by $7.5 billion

Multiple Choice

If the slope of the consumption line is 0.8:

• the MPC is 0.8

• the MPS is 0.8

• the MPC is 1/0.2

• the MPS is 1/0.2

Multiple Choice

If the MPC is 0.63, the multiplier is:

• 1 / 0.63

• 1 – 0.37

• 1 /0 .37

• 0.63 / 0.37

Multiple Choice

All else equal, if the interest rate rises:

• planned investment spending will decrease

• the investment demand curve will shift upward

• the investment demand curve will shift to the left

• the investment demand curve will shift to the right

Multiple Choice

The consumption schedule is:

• an inverse relationship between consumption and the price level

• a direct relationship between consumption and disposable income

• an inverse relationship between consumption and saving

• an inverse relationship between consumption and the tax rate

Multiple Choice

Along a particular saving schedule, each change in disposable income of $15 billion generates an additional $3 billion in saving. Therefore

• the MPS is 0.3

• the MPS is 0.2

• the APC is 0.8

• the slope of the consumption schedule is 0.7