MM-1A

MM-1A

University

10 Qs

quiz-placeholder

Similar activities

How Hong Kong Became a British Colony

How Hong Kong Became a British Colony

4th Grade - University

15 Qs

Law of Agency

Law of Agency

University

11 Qs

Krungsri ESG

Krungsri ESG

University

15 Qs

Popes, Kings, and the Crusades

Popes, Kings, and the Crusades

5th Grade - University

14 Qs

The process of a law

The process of a law

University

10 Qs

Social Science

Social Science

8th Grade - University

10 Qs

Early migrations in the Caribbean

Early migrations in the Caribbean

University

10 Qs

Traders, Kings and Pilgrims

Traders, Kings and Pilgrims

KG - Professional Development

10 Qs

MM-1A

MM-1A

Assessment

Quiz

Social Studies

University

Practice Problem

Easy

Created by

Wynne Hom

Used 7+ times

FREE Resource

AI

Enhance your content in a minute

Add similar questions
Adjust reading levels
Convert to real-world scenario
Translate activity
More...

10 questions

Show all answers

1.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

What is the formula for the simple expenditure multiplier in a closed economy with no government or foreign trade?

1 / (1 - MPC)

1 / (MPC)

1 - MPC

1 / (MPS)

2.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

If the marginal propensity to consume (MPC) is 0.8, what is the value of the expenditure multiplier?

4

5

2

1.25

3.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Which of the following would increase the value of the expenditure multiplier?

An increase in taxes

A decrease in the MPC

An increase in the MPC

An increase in imports

4.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

When MPC = 0.6, how much would total spending increase if autonomous spending increases by $100?

$150

$250

$400

$500

5.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

If the expenditure multiplier is 4, which of the following is the MPC?

0.2

0.25

0.5

0.75

6.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

Why does the expenditure multiplier occur in an economy?

Because changes in aggregate demand directly change output.

Because initial spending leads to multiple rounds of spending.

Because changes in government spending impact only GDP.

Because inflation remains constant.

7.

MULTIPLE CHOICE QUESTION

45 sec • 1 pt

If MPC = 0.9, and investment spending increases by $200 million, what is the total increase in GDP?

$1,000 million

$900 million

$2,000 million

$1,800 million

Access all questions and much more by creating a free account

Create resources

Host any resource

Get auto-graded reports

Google

Continue with Google

Email

Continue with Email

Classlink

Continue with Classlink

Clever

Continue with Clever

or continue with

Microsoft

Microsoft

Apple

Apple

Others

Others

Already have an account?