Exam 11: Consumption, Real GDP, and the Multiplier

The consumption function shifts upward when

At a level of real disposable income of 0, consumption is $4000. Then

-Refer to the above figure. The figure represents the saving function for the consumer. Point B represents

Along the 45-degree reference line

Which of the following is a TRUE statement?

-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 does planned real saving equal when real disposable income equals $12,000?

Consumption expenditures include all of the following EXCEPT

Which one of the following is TRUE?

The multiplier is

-Refer to the above figure. The figure represents the saving function for the consumer. Point A represents

Average propensity to consume

Which of the following would cause a leftward shift in the investment function?

A higher price level causes

-Refer to the above figure. If real disposable income is less than $5,000, then saving is

Which of the following is a flow variable?

-In the above table, saving is positive when real disposable income is greater than

An increase in the interest rate will cause

A permanent reduction in net exports leads to

Suppose there is a $200 billion increase in government spending. We know that this increase in government spending will cause which of the following to occur?

The ratio of the change in consumption to the change in disposable income is the