Exam 11: Consumption, Real GDP, and the Multiplier

If saving equals $200 when real disposable income equals $1,000, the break-even income is

If the marginal propensity to consume (MPC)is 0.8, the multiplier is

The average propensity to save (APS)is

-Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. The break-even level of real disposable income is

At the point at which the consumption function intersects the 45 degree reference line

-Refer to the above figure. Point B

If real disposable income increases, the average propensity to save will

Which of the following is TRUE?

-Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to save equal when real disposable income equals $14,000?

A situation in which spending exceeds income is

-Consider the above figure. The equation for the saving function is

According to Keynes, real saving and real consumption spending are functions of

Government purchases

-In the above table, saving equals zero when real disposable income equals

Which of the following is a simplifying assumption associated with the short-run Keynesian model of equilibrium real Gross Domestic Product (GDP)determination?

Which of the following is FALSE?

The arithmetic value of (1 - MPC)equals

The marginal propensity to consume (MPC)can best be defined as that fraction of

The size of the multiplier depends on

Investment spending is