Exam 9: Consumption, investment, and the Multiplier

If the multiplier is 4,the marginal propensity to consume must be

What is the primary determinant of saving and consumption according to Keynes? Explain.

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

The investment function would shift inward to the left if

The marginal propensity to consume

If firms' unplanned inventories are increasing,then in a closed,private economy

Saving equals

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

The multiplier effect tends to

A higher level of real national income will result if

Explain the relationship between real national income and planned expenditures.What are the changes to inventories when the two are not equal?

At the break-even point for the consumption function

Figure 9-2 -In Figure 9-2,savings will equal zero when real disposable income equals

If the marginal propensity to save is 0.1,the multiplier will be

If the aggregate supply curve is upward sloping,then increases in aggregate demand lead to

A permanent reduction in investment spending leads to

The break-even point on the consumption function represents the point where

Suppose the economy is at an equilibrium when C + I + G + X - M = $1,200.If the economy is currently at a real national income level of $1,400,then planned expenditures

When real national income exceeds total expenditures,

If consumption spending exceeds income,we have