Exam 9: The Sticky-Price Income-Expenditure Framework: Consumption and the Multiplier

If the marginal propensity to consume increases, the marginal propensity to expend will _______ and the value of the multiplier will ________.

The planned total expenditure equation is equal to

A change in the value of any determinant of any component of autonomous spending will

Net exports are determined by

If the marginal propensity to import increases, the marginal propensity to expend will _______ and the value of the multiplier will ________.

If the level of income is $9 trillion, C₀ = $2 trillion, C_y = .8 and t =.25, the level of consumption spending (C) would equal

In the sticky-price model, the consequences of a decrease in the marginal propensity to consume include each of the following except

If the level of autonomous spending is $6000 billion, the marginal propensity to expend is .4, and the level of national income is $12000, planned expenditures would be equal to

In the planned total expenditure equation, the group that is not the autonomous spending group

The key to understanding how the level of real GDP can fall below and fluctuate around potential output is