AP Macroecon Unit 3 Part 1 Test Review

If the marginal propensity to consume is equal to 0.50, the expenditure/spending multiplier is

• .20

• .50

• 1.00

• 2.00

• 5.00

If the marginal propensity to consume is equal to 0.75, the expenditure/spending multiplier is

• .25

• .75

• 2.00

• 4.00

• 7.00

If the marginal propensity to save is equal to 0.25, the expenditure/spending multiplier is

• .25

• .75

• 2.00

• 4.00

• 7.00

If the marginal propensity to save is equal to 0.10, the expenditure/spending multiplier is

• .10

• .90

• 2.00

• 5.00

• 10.00

If the marginal propensity to save is equal to 0.20, the expenditure/spending multiplier is

• .10

• .90

• 2.00

• 5.00

• 10.00

If the marginal propensity to consume is 0.50, and initial increase in aggregate spending of $1,000 will lead to a total change in real GDP equal to

• 1,000

• 1,500

• 2,000

• 10,000

• 50,000

If the marginal propensity to consume is 0.90, and initial increase in aggregate spending of $1,000 will lead to a total change in real GDP equal to

• 1,000

• 5,000

• 2,000

• 10,000

• 9,000

If the marginal propensity to save is 0.10, and initial increase in aggregate spending of $1,000 will lead to a total change in real GDP equal to

• 1,000

• 5,000

• 2,000

• 10,000

• 9,000

If the marginal propensity to save is 0.25, and initial increase in aggregate spending of $1,000 will lead to a total change in real GDP equal to

• 1,000

• 4,000

• 5,000

• 10,000

• 9,000

If the marginal propensity to save is 0.5, and initial increase in aggregate spending of $1,000 will lead to a total change in real GDP equal to

• 2,000

• 4,000

• 5,000

• 10,000

• 9,000