Refer to the above figure. If the marginal propensity to consume increases to 0.8, equilibrium
output
Question 8 options: increases to $250 million remains at $200 million increases to $400 milion
cannot be determined as we do not know the progressive tax rate, t
Refer to the above figure. If government expenditure decreases by $20, equilibrium output:
decreases to $150
does not affect the marginal propensity to consume (b)
does not affect the progressive tax rate (t)
all of the above
Refer to the above figure. If investment expenditure increases by $10, equilibrium output will
increase to
Question 5 options:
$210 million
$90 million
$225 million
Refer to the above figure. The equation for the demand line is:
Question 3 options:
Demand = $80 +0.4Y
Demand = $80 +0.6Y
Demand =$120 +0.6Y
Demand = $120 +0.4Y
[Aggregate Income/ Aggregate Output].
Refer to the above figure. If the marginal propensity to consume inc.pdf
1. Refer to the above figure. If the marginal propensity to consume increases to 0.8, equilibrium
output
Question 8 options: increases to $250 million remains at $200 million increases to $400 milion
cannot be determined as we do not know the progressive tax rate, t
Refer to the above figure. If government expenditure decreases by $20, equilibrium output:
decreases to $150
does not affect the marginal propensity to consume (b)
does not affect the progressive tax rate (t)
all of the above
Refer to the above figure. If investment expenditure increases by $10, equilibrium output will
increase to
Question 5 options:
$210 million
$90 million
$225 million
Refer to the above figure. The equation for the demand line is:
Question 3 options:
Demand = $80 +0.4Y
Demand = $80 +0.6Y
Demand =$120 +0.6Y
Demand = $120 +0.4Y
[Aggregate Income/ Aggregate Output]
![Refer to the above figure. If the marginal propensity to consume increases to 0.8, equilibrium
output
Question 8 options: increases to $250 million remains at $200 million increases to $400 milion
cannot be determined as we do not know the progressive tax rate, t
Refer to the above figure. If government expenditure decreases by $20, equilibrium output:
decreases to $150
does not affect the marginal propensity to consume (b)
does not affect the progressive tax rate (t)
all of the above
Refer to the above figure. If investment expenditure increases by $10, equilibrium output will
increase to
Question 5 options:
$210 million
$90 million
$225 million
Refer to the above figure. The equation for the demand line is:
Question 3 options:
Demand = $80 +0.4Y
Demand = $80 +0.6Y
Demand =$120 +0.6Y
Demand = $120 +0.4Y
[Aggregate Income/ Aggregate Output]](https://image.slidesharecdn.com/refertotheabovefigure-230331122140-da3cc0e3/85/Refer-to-the-above-figure-If-the-marginal-propensity-to-consume-inc-pdf-1-320.jpg)
