Question 1

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

Accepted Answer

A) 0.8 
B) 800 
C) 810 
D) 0.81 
A) 0.8 
B) 800 
C) 810 
D) 0.81

Question 2

Liquidity trap is a situation when,

Accepted Answer

A) all potential investors expect the rate of interest to rise in future. 
B) all potential investors expect the rate of interest to fall in future. 
C) natural rate of interest is above the critical rate of interest. 
D) none of these 
A) all potential investors expect the rate of interest to rise in future. 
B) all potential investors expect the rate of interest to fall in future. 
C) natural rate of interest is above the critical rate of interest. 
D) none of these

Question 3

Cambridge K is related to -

Accepted Answer

A) restatement theory of money 
B) cash balance approach 
C) liquidity preference theory 
D) transaction version of quantity theory of money 
A) restatement theory of money 
B) cash balance approach 
C) liquidity preference theory 
D) transaction version of quantity theory of money

Question 4

Using Keynesian multiplier, MPC= 0.8 and government spending increased by 40 billion dollars. How much will GDP increased?

Accepted Answer

A) 100 billion dollars 
B) 200 billion dollars 
C) 300 billion dollars 
D) 500 billion dollars 
A) 100 billion dollars 
B) 200 billion dollars 
C) 300 billion dollars 
D) 500 billion dollars

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

Liquidity trap is a situation when,

Cambridge K is related to -

Using Keynesian multiplier, MPC= 0.8 and government spending increased by 40 billion dollars. How much will GDP increased?

Macroeconomic Theory and Concepts

Economic Models,Concepts and Theories: Part A

Keynesian Analysis, Monetary Approach, and Classical Model

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Exam 3: Economic Models,Concepts and Theories: Part B

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

Liquidity trap is a situation when,

Cambridge K is related to -

Using Keynesian multiplier, MPC= 0.8 and government spending increased by 40 billion dollars. How much will GDP increased?

Macroeconomic Theory and Concepts

Economic Models,Concepts and Theories: Part A

Keynesian Analysis, Monetary Approach, and Classical Model

Filters