Econ chapter 10 example #75956

Which of the following is correct?

When we draw an investment demand curve we hold constant all of the following except:

If Carol's disposable income increases from $1,200 to $1,700 and her level of saving increases from minus $100 to a plus $100, her marginal propensity to:

The consumption schedule shows:

The consumption and saving schedules reveal that the:

The investment demand curve will shift to the left as a result of:

The 45-degree line on a graph relating consumption and income shows:

If the MPC is .70 and investment increases by $3 billion, the equilibrium GDP will:

If the real interest rate in the economy is i and the expected rate of return on additional investment is r, then other things equal:

Refer to the above diagram. At disposable income level D, consumption is:

If for some reason households become increasingly thrifty, we could show this by:

If the saving schedule is a straight line, the:

At the point where the consumption schedule intersects the 45-degree line

Investment spending in the United States tends to be unstable because

Refer to the above diagram. Assume that for the entire business sector of a private closed economy there is $0 worth of investment projects that will yield an expected rate of return of 25 percent or more. But there are $15 worth of investments that will yield an expected rate of return of 20−25 percent; another $15 with an expected rate of return of 15−20 percent; and similarly an additional $15 of investment projects in each successive rate of return range down to and including the 0−5 percent range. Which of the lines on the above diagram represents these data?

If the inflation rate is 10 percent and the real interest rate is 12 percent, the nominal interest rate is

Assume the MPC is 2/3. If investment spending increases by $2 billion, the level of GDP will increase by

At the point where the consumption schedule intersects the 45-degree line:

The real interest rate is:

Which one of the following will cause a movement up along an economy's saving schedule?

An upward shift of the saving schedule suggests

The saving schedule is such that as aggregate income increases by a certain amount saving:

In the late 1990s the U.S. stock market boomed, causing U.S. consumption to rise. Economists refer to this outcome as the:

Answer the question on the basis of the following information for a private closed economy. Assume that for the entire business sector of the economy there is $0 worth of investment projects that will yield an expected rate of return of 25 percent or more. But there are $15 worth of investments that will yield an expected rate of return of 20−25 percent; another $15 with an expected rate of return of 15−20 percent; and similarly an additional $15 of investment projects in each successive rate of return range down to and including the 0−5 percent range. Refer to the above information. If the real interest rate is 15 percent, what amount of investment will be undertaken?

The MPC for an economy is:

The greater the MPC, the greater the multiplier.

Refer to the above diagram. The marginal propensity to consume is:

Given the consumption schedule, it is possible to graph the relevant saving schedule by:

The consumption schedule directly relates:

The investment demand curve will shift to the right as the result of:

The numerical value of the multiplier will be smaller the:

In annual percentage terms, investment spending in the United States is:

Which one of the following will cause a movement up along an economy's saving schedule?

The MPC for an economy is:

Assume there are no prospective investment projects (I) that will yield an expected rate of return (r) of 25 percent or more, but that there are $5 billion of investment opportunities with an expected rate of return between 20 and 25 percent, an additional $5 billion between 15 and 20 percent, and so on. If the real interest rate is 15 percent in this economy, the aggregate amount of investment will be:

Suppose that a new machine tool having a useful life of only one year costs $80,000. Suppose, also, that the net additional revenue resulting from buying this tool is expected to be $96,000. The expected rate of return on this tool is:

If the real interest rate in the economy is i and the expected rate of return on additional investment is r, then other things equal:

The saving schedule is drawn on the assumption that as income increases:

When consumption and saving are graphed relative to real GDP, an increase in personal taxes will shift: