A $100 million increase in investment spending will cause read GDP to
Select one:
a. decrease by less than $100 million
b. increase by more than $100 million
c. increase by less than $100 million
d. decrease by $100 million
e. increase by $100 million
the marginal propensity to consume is 0.5, then a $100 million increase in investment spending will lead to an increase of real GDP by
Select one:
a. $100 million
b. $50 million
c. $150 million
d. $200 million
e. $300 million
When income is $1,000, the level of consumption spending is equal to $850. When income rises to $1,200 the level of consumption spending is equal to $1,000. In this case the value of the marginal propensity to consume is
Select one:
a. 0.80
b. 0.50
c. 0.75
d. 0.85
e. 0.83
The marginal propensity to consume measures the
Select one:
a. increase in consumer spending when investment spending rises by $1
b. increase in disposable income when consumer spending rises by $1
c. increase in consumer spending when disposable income rises by $1
d. increase in disposable income when investment spending rises by $1
e. increase in consumer spending when taxes rise by $1
A $100 million increase in investment spending will cause read GDP to
Select one:
a. decrease by less than $100 million
b. increase by more than $100 million
c. increase by less than $100 million
d. decrease by $100 million
e. increase by $100 million
the marginal propensity to consume is 0.5, then a $100 million increase in investment spending will lead to an increase of real GDP by
Select one:
a. $100 million
b. $50 million
c. $150 million
d. $200 million
e. $300 million
When income is $1,000, the level of consumption spending is equal to $850. When income rises to $1,200 the level of consumption spending is equal to $1,000. In this case the value of the marginal propensity to consume is
Select one:
a. 0.80
b. 0.50
c. 0.75
d. 0.85
e. 0.83
The marginal propensity to consume measures the
Select one:
a. increase in consumer spending when investment spending rises by $1
b. increase in disposable income when consumer spending rises by $1
c. increase in consumer spending when disposable income rises by $1
d. increase in disposable income when investment spending rises by $1
e. increase in consumer spending when taxes rise by $1