Test #6, Chapter 7

If C = $4,000 + 0.8(Y) and the expected equilibrium level of national income is $40,000, then the intended investment will be

Your answer:
not enough information provided
1,000
-1,000
44,000
36,000


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If C = $1,000 + 0.8(Y) and intended investment is $4,000, then the equilibrium level of the national income will be

Your answer:
$14,000
$3,200
$25,000
$7,778
$13,200


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If the marginal propensity to consume is equal to 0.8, the addition of $60 billion in aggregate expenditure will increase national income by

Your answer:
$18.8 billion
$60 billion
$48 billion
$300 billion
$108 billion


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When the income multiplier is 3, the marginal propensity to save is

Your answer:
0.33
0.66
1/(1 + MPC)
1/(1 - MPC)
nome of the above


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Spending by consumers on consumption goods, spending by business on investment goods, spending by government, and spending by foreigners on the net exports make up

Your answer:
discretionary spending
aggregate supply
disposable national income
the equilibrium economy
aggregate expenditure


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