Suppose an economy existed in which investment, net exports, and consumption were not sensitive to changes in interest rates. For this economy, the AD curve would O have a slope less than 1 but greater than zero. O be horizontal. O have a negative slope. O be vertical. have a slope equal to 1.
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- line shows the relationship between planned aggregate expenditure and output, and line represents the condition that planned aggregate expenditure and output are equal. In the Keynesian cross diagram, the the expenditure; 45-degree O45-degree; consumption function 45 degree; expenditure consumption function; 45-degree9. Suppose Dina calculates her permanent income by adaptive expectations. Year 2010 Dina's permanent income was 68,000, and year2011 actual income is 71,000. Assume that, long-run marginal to consume is 0.90 and short-run marginal propensity to consume is 0.18. What is her consumption expenditure year 2011? * O 51,740 O 41,740 O 59,500 O 44,750 none of the above is correctWhich of the following will NOT shift the consumption function upward? * O An increase in disposable income O A fall in the real interest rate O An increase in wealth O None of the above shift the consumption function upward
- 9. Suppose Amal calculates her permanent income by adaptive expectations . Year 2020 Amal's permanent income was 38,000 , and year 2021 actual income is 41,000 . Assume that , long - run marginal to consume is 0.90 and short - run marginal propensity to consume is 0.28 . What is her consumption expenditure year 2021 ? O 36.774 O 35,040 O 40.226 O 33.454 O 34.740 O None of the above is correctSuppose the marginal propensity to consume in an economy is 0.60. If the disposable income in this economy changes by $50 billion, consumption changes by $ billion 50 40 20 30 O O O OWhich of the following would not increase consumption spending? O Decreased disposable income. Increased household wealth O A lower interest rate O Expectations of greater future income
- Assume in a simple economy that the level of saving is -$800 when aggregate output equals zero and that the marginal propensity to save is 0.25. Derive the saving function and the consumption function. O A. S= -800 - 0.25Y andC= 800 - 0.75Y O B. S= - 800 +0.25Y and C = 800 + 0.75Y OC. S= -800 - 0.025Y and C = 800 - 0.075Y O D. S= - 800- 0.25Y and C= 800 + 0,75Y Consider the graph of these functions. The consumption function has a y-intercept of and is The saving function has a y-intercept of and is The consumption curve crosses the 45-degree line at a level of output of (Enter your response as an integer) Click to select your answer(s). lenovo V560 EGOOn a graph of a consumption function, what is the significance of the 45-degree line? O a. It connects all points where desired consumption equals actual disposable income. O b. It connects all points where desired consumption equals desired expenditure. O c. Desired consumption is zero at all points along the 45-degree line. O d. It connects all points where desired consumption equals desired saving. O e. It shows the slope of the average consumption function, against which we measure other consumpfion functionsIn a Keynesian cross diagram, if the marginal propensity to save increases, O a) the aggregate expenditure function will shift to the right, but its slope will not change b) the aggregate expenditure function will shift to the left, but its slope will not change O c) the slope of the aggregate expenditure function will increase O d) the slope of the aggregate expenditure function will decrease
- Which of the following graphs shows the correct effect on the consumption function when there is a decrease in real interest rates and the substitution effect is dominant? Figure A Figure B Total consumption Consumption O a. Figure B O b. Figure A O c. Figure C O d. Figure D Consumption function Figure C Income Income (GDP) Consumption Total consumption Income (GDP) Figure D Consumption function IncomeThe slope of the aggregate expenditure line is always this slope equals the than 1. If there are no imports or taxes, O greater: marginal propensity to save O greater: marginal propensity to consume O less; marginal propensity to consume O less; marginal propensity to saveThe aggregate consumption function is C 100 + 0.6Yd. %3D If income is $1,000 and net taxes are $300, consumption equals Lütfen birini seçin: O A. 700 О В. 580 О С. 520 O D. 800 O E. 480 Which of the following considered a liebility to a hank2