Question 1

Assume that the parameters of a particular economy are as follows: MPC = 0.525 and MPM = 0.125.What is the value of the multiplier?

Accepted Answer

A) 1 
B) 1.175 
C) 0.85 
D) 1.48 
E) 1.67 
A) 1 
B) 1.175 
C) 0.85 
D) 1.48 
E) 1.67

Question 2

-Refer to the information above to answer this question.What is the value of equilibrium income?

Accepted Answer

A) 2,700. 
B) 3,500 
C) 4,500. 
D) 7,500. 
E) 11,250. 
A) 2,700. 
B) 3,500 
C) 4,500. 
D) 7,500. 
E) 11,250.

Question 3

-Refer to the data above to answer this question.What is the equation for the saving function?

Accepted Answer

A) S = -200Y. 
B) C = -200 + Y. 
C) C = -200 + 0.2Y. 
D) C = -200 + 0.8Y. 
E) C = 200 + 0.8Y. 
A) S = -200Y. 
B) C = -200 + Y. 
C) C = -200 + 0.2Y. 
D) C = -200 + 0.8Y. 
E) C = 200 + 0.8Y.

Question 4

What is the most important determinant of the level of consumption?

Accepted Answer

A) The level of prices. 
B) Consumer expectations. 
C) The stock of wealth. 
D) The level of income. 
A) The level of prices. 
B) Consumer expectations. 
C) The stock of wealth. 
D) The level of income.

Question 5

What effect does an increase in exports have?

Accepted Answer

A) It leads to an even larger increase in equilibrium income. 
B) It leads to an even larger decrease in equilibrium income. 
C) It leads to a smaller increase in equilibrium income. 
D) It leads to a smaller decrease in equilibrium income. 
A) It leads to an even larger increase in equilibrium income. 
B) It leads to an even larger decrease in equilibrium income. 
C) It leads to a smaller increase in equilibrium income. 
D) It leads to a smaller decrease in equilibrium income.

Question 6

The following data relates to a national economy (all figures in $billions):
  
-Refer to the table above to answer this question.If planned investment increased by $200,what would be the new value of equilibrium income?

Accepted Answer

A) $2,200 
B) $2,400 
C) $2,600 
D) $2,800 
E) Cannot be determined from the information. 
A) $2,200 
B) $2,400 
C) $2,600 
D) $2,800 
E) Cannot be determined from the information.

Question 7

The following data refers to a national economy with all figures in $billions.
  
-Refer to the table above to answer this question.What is the value of equilibrium income?

Accepted Answer

A) $1,200 
B) $1,500 
C) $1,600 
D) $2,000 
E) $2,400 
A) $1,200 
B) $1,500 
C) $1,600 
D) $2,000 
E) $2,400

Question 8

"If there is expenditure equilibrium for an economy,leakages will be equal to injections,and G = T." Evaluate this statement.

Accepted Answer

Expenditure equilibrium implie

Question 9

What is meant by the term induced expenditures? Provide an example.

Accepted Answer

Induced expenditures refers to expenditu

Question 10

Assume that in a particular economy the MPC = 0.64 and the MPM = 0.14.
-Refer to the above graph to answer this question.What is the value of the MPE in this economy?

Accepted Answer

A) 0.25. 
B) 0.33. 
C) 0.5. 
D) 0.67. 
E) 1. 
A) 0.25. 
B) 0.33. 
C) 0.5. 
D) 0.67. 
E) 1.

Question 11

What circumstance will lead to a smaller multiplier?

Accepted Answer

A) If the MPS becomes bigger. 
B) If the MPC becomes bigger. 
C) If the MPM becomes smaller. 
D) If the MLR becomes smaller. 
A) If the MPS becomes bigger. 
B) If the MPC becomes bigger. 
C) If the MPM becomes smaller. 
D) If the MLR becomes smaller.

Question 12

If the MPE is equal to 0.4,what is the value of the multiplier?

Accepted Answer

A) 1.67. 
B) 2.5. 
C) 0.25. 
D) 0.167. 
A) 1.67. 
B) 2.5. 
C) 0.25. 
D) 0.167.

Question 13

What four factors will cause a change in net exports?

Accepted Answer

The four factors that cause a

Question 14

Assume that in a particular economy the MPC = 0.64 and the MPM = 0.14.
-Refer to the information above to answer this question.What is the value of the marginal leakage rate?

Accepted Answer

A) 0.46. 
B) 0.50. 
C) 0.72. 
D) 0.86. 
A) 0.46. 
B) 0.50. 
C) 0.72. 
D) 0.86.

Question 15

What is the formula for the marginal propensity to expend?

Accepted Answer

A) ∆ autonomous expenditures/∆ national income 
B) ∆ national income/∆ induced expenditures 
C) ∆ consumption/∆ national income 
D) ∆ aggregate expenditures/∆ national income 
A) ∆ autonomous expenditures/∆ national income 
B) ∆ national income/∆ induced expenditures 
C) ∆ consumption/∆ national income 
D) ∆ aggregate expenditures/∆ national income

Question 16

Growth in an economy's GDP (if not caused by a change in exports)results in a larger trade deficit or in a reduction of a previous trade surplus.

Accepted Answer

A) True 
 B)False

Question 17

-Refer to the above graph to answer this question.What is the value of autonomous expenditures?

Accepted Answer

A) $100. 
B) $200. 
C) $300. 
D) Cannot be determined. 
A) $100. 
B) $200. 
C) $300. 
D) Cannot be determined.

Question 18

The following data relates to a national economy (all figures in $billions):
  
-Refer to the above graph to answer this question.What is the value of equilibrium income?

Accepted Answer

A) 0. 
B) $300. 
C) $600. 
D) Cannot be determined. 
A) 0. 
B) $300. 
C) $600. 
D) Cannot be determined.

Question 19

If the MPE is 0.9,what will be the value of the multiplier?

Accepted Answer

A) 0.1. 
B) 0.9. 
C) 10. 
D) 1.67. 
E) 1. 
A) 0.1. 
B) 0.9. 
C) 10. 
D) 1.67. 
E) 1.

Question 20

On what does the level of consumption in an economy depend most?

Accepted Answer

A) The needs of households. 
B) The income level of households. 
C) The level of savings. 
D) The wants of households. 
A) The needs of households. 
B) The income level of households. 
C) The level of savings. 
D) The wants of households.

Assume that the parameters of a particular economy are as follows: MPC = 0.525 and MPM = 0.125.What is the value of the multiplier?

-Refer to the information above to answer this question.What is the value of equilibrium income?

-Refer to the data above to answer this question.What is the equation for the saving function?

What is the most important determinant of the level of consumption?

What effect does an increase in exports have?

The following data relates to a national economy (all figures in $billions): -Refer to the table above to answer this question.If planned investment increased by $200,what would be the new value of equilibrium income?

The following data refers to a national economy with all figures in $billions. -Refer to the table above to answer this question.What is the value of equilibrium income?

"If there is expenditure equilibrium for an economy,leakages will be equal to injections,and G = T." Evaluate this statement.

What is meant by the term induced expenditures? Provide an example.

Assume that in a particular economy the MPC = 0.64 and the MPM = 0.14. -Refer to the above graph to answer this question.What is the value of the MPE in this economy?

What circumstance will lead to a smaller multiplier?

If the MPE is equal to 0.4,what is the value of the multiplier?

What four factors will cause a change in net exports?

Assume that in a particular economy the MPC = 0.64 and the MPM = 0.14. -Refer to the information above to answer this question.What is the value of the marginal leakage rate?

What is the formula for the marginal propensity to expend?

Growth in an economy's GDP (if not caused by a change in exports)results in a larger trade deficit or in a reduction of a previous trade surplus.

-Refer to the above graph to answer this question.What is the value of autonomous expenditures?

The following data relates to a national economy (all figures in $billions): -Refer to the above graph to answer this question.What is the value of equilibrium income?

If the MPE is 0.9,what will be the value of the multiplier?

On what does the level of consumption in an economy depend most?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters

Exam 6: Aggregate Expenditures

Assume that the parameters of a particular economy are as follows: MPC = 0.525 and MPM = 0.125.What is the value of the multiplier?

-Refer to the information above to answer this question.What is the value of equilibrium income?

-Refer to the data above to answer this question.What is the equation for the saving function?

What is the most important determinant of the level of consumption?

What effect does an increase in exports have?

The following data relates to a national economy (all figures in $billions): -Refer to the table above to answer this question.If planned investment increased by $200,what would be the new value of equilibrium income?

The following data refers to a national economy with all figures in $billions. -Refer to the table above to answer this question.What is the value of equilibrium income?

"If there is expenditure equilibrium for an economy,leakages will be equal to injections,and G = T." Evaluate this statement.

What is meant by the term induced expenditures? Provide an example.

Assume that in a particular economy the MPC = 0.64 and the MPM = 0.14. -Refer to the above graph to answer this question.What is the value of the MPE in this economy?

What circumstance will lead to a smaller multiplier?

If the MPE is equal to 0.4,what is the value of the multiplier?

What four factors will cause a change in net exports?

Assume that in a particular economy the MPC = 0.64 and the MPM = 0.14. -Refer to the information above to answer this question.What is the value of the marginal leakage rate?

What is the formula for the marginal propensity to expend?

Growth in an economy's GDP (if not caused by a change in exports)results in a larger trade deficit or in a reduction of a previous trade surplus.

-Refer to the above graph to answer this question.What is the value of autonomous expenditures?

The following data relates to a national economy (all figures in $billions): -Refer to the above graph to answer this question.What is the value of equilibrium income?

If the MPE is 0.9,what will be the value of the multiplier?

On what does the level of consumption in an economy depend most?

The Economic Problem

Demand and Supply: an Introduction

Measuring the Economy 1: GDP and Economic Growth

Measuring the Economy 2: Unemployment and Inflation

Aggregate Demand and Supply

Fiscal Policy

Money and Banking

The Money Market and Monetary Policy

International Trade

Exchange Rates and the Balance of Payments

Macroeconomic Policy Revisited

A Walk Through the Twentieth Century and Beyond

Filters