If the Keynesian consumption function is C = 10 + 0.8 Yd then, if disposable income is $1000, what is amount

of total consumption?

An increase in the marginal propensity to consume will:

Dana transfers $5,000 from her checking to her savings account. This transaction will

( M1: Transaction money, such as stock, bond, check, money order),

M2: M1 + saving+ money market + ect. ( broad money)

The MPS is

Automatic-transfer savings accounts are

The tax multiplier is

Over which component of investment do firms have the least amount of control?

The equilibrium position for an open economy is

"Imports are __________ the circular flow and exports are __________ circular flow."

Inventory investment is higher than firms planned, therefore

For the economy to be in equilibrium,

Firms react to unplanned increases in inventories by

Evelyn won $10,000 at a bingo game. She deposits her winnings into a money market fund so that she can use the money next year to pay her tuition. This is an example of money serving as

TRUE or FALSE: Saving = Income + Consumption

TRUE or FALSE: If G exceeds T, the federal government must borrow from the public to finance the deficit.

TRUE or FALSE: Monetary policy deals with the behavior of the executive and legislative branches of the federal government concerning the nation’s money supply.

TRUE or FALSE: The government spending multiplier is the ratio of the change in the equilibrium level of input to a change in government spending.

TRUE or FALSE: The multiplier for a change in taxes is the same as the multiplier for a change in government spending.

TRUE or FALSE: The federal government’s budget is an interplay of social, economic, and political forces.

TRUE or FALSE: The federal budget has nothing to do with the goals the federal government wants to achieve.

TRUE or FALSE: The federal debt is the total amount of money owed by the federal government.

TRUE or FALSE: People with more income tend to consume less than people with less income.

TRUE or FALSE: A key reason for the large budget deficits of the 1980’s was that interest payments as a percentage of GDP rose substantially.

TRUE or FALSE: To an economist, an investment is something produced that is used to create value in the future.

TRUE or FALSE: Uncertainty about the future is likely to increase current spending.

TRUE or FALSE: Inventory change is wholly determined by how much households decide to buy, which is under the complete control of firms.

TRUE or FALSE: A firm will always end up investing the exact amount that it planned to.

TRUE or FALSE: M2 = M1 + savings accounts + money market accounts + other near monies

TRUE or FALSE: First Union, Met Life, and Washington Mutual Savings are examples of financial intermediaries.

TRUE or FALSE: In any given period, there is an exact equality between aggregate output and aggregate income.

TRUE or FALSE: Money is the same as income.

TRUE or FALSE: Kate deposits 10% of her paycheck into a savings account monthly. This is an example of money serving as a medium of exchange.

TRUE or FALSE: M1 = currency held outside banks + demand deposits + traveler’s checks + other checkable deposits

TRUE or FALSE: Excess reserves = actual reserves - required reserves

TRUE or FALSE: M1 is also known as broad money.

TRUE or FALSE: As interest rates fall, spending increases.

M2 is known as transactions money.

Assets = Liabilities / Net Worth. (True or False)

The FOMC consists only of 10 members of the Fed’s Board of Governors. How many members of Fed Board of Governors, How many President of new york Federal Reserve Bank, How many of the other 11 district bank presidents ?

Some items on the expenditure side of the federal government’s budget, such as unemployment benefits, depend on the state of the economy.

The tax revenues of the federal government are independent of the state of the U.S. economy.

Bank borrowing from the Federal Reserve leads to an increase in the money supply.

The Treasury Department often prints money to finance the deficit.

Evelyn won $10,000 at a bingo game. She deposits her winnings into a money market fund so that she can use the money next year to pay her tuition. This is an example of money serving as

is gold ?

dollar bill is

The account that shows international transactions involving currently produced goods and services is called the

Keynes believed that the government should ______ taxes and/or ______ government spending to get the economy out of a slump."

c = a+ b Yd ( Y is disposable income = Y - T), Which letter is standing for MPC ? sometime, they just use Y instead of Yd in the formlua C = a+ bY, but you have to remember Y is disposable income )

c = a+ b Yd ( Yd is disposable income Yd = Y- T), MPC = ?

c = a+ b Yd ( Yd is disposable income Yd = Y- T), MPS = ?

The change in consumption divided by the change in income is equal to

The change in saving divided by the change in income is equal to

MPC+MPS=

If consumption is 70,000 when income is 80,000, and consumption increases to 78,000 when income increases to 100, 000, the MPC is

If Teena's consumption function is of the form [C = 400 + 0.75Yd], her saving equals zero at an income level, what is the disposable income Yd ?

If Teena's consumption function is of the form [C = 400 + 0.75Yd], what is MPC ?

If Teena's consumption function is of the form [C = 400 + 0.75Yd], what is MPS?

If Teena's consumption function is of the form [C = 400 + 0.8Yd], Yd is disposable income , Y is aggrgated income (output) , T is tax , Yd = ?

If Teena's consumption function is of the form [C = 400 + 0.8Yd], Yd is disposable income , Y is aggrgated income (output) , T is tax , I =300, G=1300, T =0.2 Y +50 , I for

If Teena's consumption function is of the form [C = 400 + 0.8Yd], Yd is disposable income , Y is aggrgated income (output) , T is tax , I =300, G=1300, T =0.2 Y +50 , Y = ?

If Teena's consumption function is of the form [C = 400 + 0.8Yd], Yd is disposable income , Y is aggrgated income (output) , T is tax , I =300, G=1300, T =0.2 Y +50 , C = ?

If Teena's consumption function is of the form [C = 400 + 0.8Yd], Yd is disposable income , Y is aggrgated income (output) , T is tax , I =300, G=1300, T =0.2 Y +50 , since

Y = 0.64Y +360 + 300 + 1300

Y= 0.64 Y+ 1960, Y = ?

If Teena's consumption function is of the form [C = 400 + 0.8Yd], Yd is disposable income , Y is aggregated income (output) , T is tax , I =300, G=1300, T =0.2 Y +50 , since Y = 5444.44, the federal budget deficit /surplus in equilibrium ( use + for surplus, or - for a deficit) ( two decimals)

If Teena's consumption function is of the form [C = 400 + 0.8Yd], Yd is disposable income , Y is aggregated income (output) , T is tax , I =300, G=1300, T =0.2 Y +50 , Yf = 7000 since Y = 5444.44, what is the GDP gap ?

The multiplier is the ratio of the