Home / Questions / If equilibrium income is $400 billion, MPC = 0.9, and autonomous investment increases $40
If equilibrium income is $400 billion, MPC = 0.9, and autonomous investment increases $40 billion, equilibrium income will be
A) $440 billion.
B) $360 billion.
C) $600 billion.
D) $800 billion.
92) Other things constant, if the MPS is 0.1, and private investment spending falls by $100 million, then national income
A) decreases by $10 million.
B) increases by $90 million.
C) decreases by $1 billion.
D) increases by $1 billion.
93) If an increase of $5 billion in investment is associated with an increase of $25 billion in income, the multiplier is
A) 1.
B) 3.
C) 5.
D) 7.
94) If the MPC is 0.9, the multiplier for a change in autonomous spending is
A) 0.1.
B) 9.
C) 10.
D) 100.
95) A decrease in autonomous investment of $100 that occurs when MPS = 0.25 will lead to a decrease in national income of
A) $25.
B) $100.
C) $400.
D) $800.
96) The multiplier is the ratio of the
A) change in the equilibrium level of real national income to the change in autonomous expenditures.
B) equilibrium level of real national income to the change in induced expenditures.
C) change in induced expenditures to the change in autonomous expenditures.
D) change in autonomous expenditures to the change in the equilibrium level of real national income.
97) A permanent reduction in investment spending leads to
A) a more than proportional increase in real national income.
B) a more than proportional decrease in real national income.
C) a less than proportional decrease in real national income.
D) a proportional decrease in real national income.
98) An increase in net exports leads to an increase in real national income. Further,
A) consumption spending and saving increase.
B) consumption spending increases but saving doesn't change.
C) consumption spending increases while investment spending decreases.
D) government spending decreases to offset the increase in net exports.
99) The expression 1/MPS is defined as
A) one minus the multiplier.
B) the inverse of the multiplier.
C) the multiplier.
D) autonomous consumption.
100) If the multiplier is 10, then the MPC is
A) 0.9.
B) 0.1.
C) 1.
D) 9.
Dec 07 2019 View more View Less
How is the energy efficiency ratio (EER) calculated?
Jun 11 2021The following information (in millions) was taken from the December 31 financial statements of Canadian National Railway Company: Instructions (a) Calculate the 2011 and ...
Apr 11 2020CO+2H2=CH3OH, in 1l vessel at 250 degree 0.1mol CO,0.1 mol h2 and 0.02 mol CH3OH have been preserved to react. At equlibrium find out the concentration of each substance....
May 13 2021Microphone is a/an (a)Output device (b)Storage device (c)Input device (d)Processing device (e)Printing device.
Jan 06 20181. briefly describe the term operation management and supply chain. 2. identify the three major functional areas of business organisations and briefly describe how they ...
Jun 14 2020Minimum CostA water line is to be built from point to point and must pass through regions where construction costs differ (see figure). The cost per kilometer (in dolla...
Aug 11 2021Which of these is the first step in the closing process?a. Close revenue account(s).b. Close expense accounts.c. Close the Income Summary account.d. Close the drawing account.
Aug 11 2021What are the points on the given curve where the tangent line is horizontal or vertical?
Jun 22 2021Select one of the two methods that incorporate the time value of money and describe that method and how it is used.
Aug 14 2020Hello, I attempted this problem but my values are not correct. Can you help me solve this? Thanks!
Sep 12 2020