The smaller the marginal propensity to consume
A. the smaller the marginal propensity to save is.
B. the large the multiplier is.
C. the smaller the multiplier is.
D. the smaller autonomous consumption is.
Answer: C
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A decrease in the price level results in a(n) ________ in household consumption spending and a(n) ________ in investment spending
A) increase; increase B) decrease; increase C) increase; decrease D) decrease; decrease
Which of the following will cause the aggregate demand curve to shift to the right?
A) An increase in the price level B) An increase in the interest rate C) An increase in money demand D) An increase in investment expenditures
A consequence of an incentive contract for employees is that
a. employees must incur additional risk b. employee level risk is reduced c. employer level risk is reduced d. there are no risk related consequences
Use the figure to calculate the income elasticity of demand when income increases from $25,000 to $30,000:
A. -1.10 B. 0.1818 C. 1.10 D. 0.20 E. -0.10