Exam 9: Aggregate Demand

Which of the following is true of the simple spending multiplier

An increase in the U.S.price level,other things constant,will _____.

An increase in the market interest rate,other things equal,will _____.

If income increases by $100 and saving increases by $25,the slope of the consumption function equals _____.

If the level of autonomous spending in an economy increases at a given price level,_____.

The market interest rate is important to the investment decision of firms:

The current level of investment depends on the current level of income.

The consumption function relates consumption spending to _____.

Which of the following is most likely to cause a rightward shift of the investment demand curve?

On a graph showing investment along the vertical axis and income along the horizontal axis,_____.

If households save $30 billion more at each level of income and the marginal propensity to consume (MPC)is 0.9,the aggregate expenditure line will _____.

Purchases of existing commodities,such as gold and precious gems,are considered investment spending by economists.

Historically,consumption spending in the United States has _____.

An increase in real disposable income will:

If the marginal propensity to consume (MPC)in your classmate's nation is 3/5 and the marginal propensity to save (MPS)in your country is 1/10,which of the following must be true?

If the simple spending multiplier is 8,the marginal propensity to consume is _____.

Which of the following is not true about a change in the price level?

An increase in the price level in an economy will _____.

The marginal propensity to consume is:

Which of the following will not shift the consumption function?