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Chapter 10 - Basic Macroeconomic Relationships
1. The most important determinant of consumer spending is:
2. The most important determinant of consumption and saving is the:
Chapter 10 - Basic Macroeconomic Relationships
3. 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:
4. With an MPS of .4, the MPC will be:
5. The MPC can be defined as that fraction of a:
Chapter 10 - Basic Macroeconomic Relationships
6. The 45-degree line on a graph relating consumption and income shows:
7. As disposable income goes up the:
8. The consumption schedule shows:
Chapter 10 - Basic Macroeconomic Relationships
9. The consumption schedule directly relates:
10. A decline in disposable income:
11. The APC is calculated as:
Chapter 10 - Basic Macroeconomic Relationships
12. The consumption schedule shows:
13. The APC can be defined as the fraction of a:
Chapter 10 - Basic Macroeconomic Relationships
14. Refer to the figure above. The consumption schedule indicates that:
15. The consumption schedule is drawn on the assumption that as income increases,
consumption will:
16. Which of the following is correct?
Chapter 10 - Basic Macroeconomic Relationships
17. The consumption schedule is such that:
18. The consumption and saving schedules reveal that the:
19. The size of the MPC is assumed to be:
Chapter 10 - Basic Macroeconomic Relationships
20. As disposable income increases, consumption:
21. The relationship between consumption and disposable income is such that:
22. If the MPC is .8 and disposable income is $200, then:
Chapter 10 - Basic Macroeconomic Relationships
23. The MPC for an economy is:
24. In contrast to investment, consumption is:
25. Refer to the above data. The MPC is:
Chapter 10 - Basic Macroeconomic Relationships
26. Refer to the above data. At an $800 level of disposable income, the level of saving is:
27. Which one of the following will cause a movement down along an economy's
consumption schedule?
Chapter 10 - Basic Macroeconomic Relationships
28. Refer to the above diagram which shows consumption schedules for economies A and B.
We can say that the:
29. At the point where the consumption schedule intersects the 45-degree line:
30. Tessa's break-even income is $10,000 and her MPC is 0.75. If her actual disposable
income is $16,000, her level of:
Chapter 10 - Basic Macroeconomic Relationships
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31. If Trent's MPC is .80, this means that he will:
32. Suppose a family's consumption exceeds its disposable income. This means that its:
33. (Advanced analysis) If the equation for the consumption schedule is C = 20 + 0.8Y, where
C is consumption and Y is disposable income, then the average propensity to consume is 1
when disposable income is:
Chapter 10 - Basic Macroeconomic Relationships
34. (Advanced analysis) The equation C = 35 + .75Y, where C is consumption and Y is
disposable income, shows that:
35. (Advanced analysis) If the equation C = 20 + .6Y, where C is consumption and Y is
disposable income, were graphed:
36. One can determine the amount of any level of total income that is consumed by:
Chapter 10 - Basic Macroeconomic Relationships
37. Which of the following is correct?
38. Dissaving means:
39. Dissaving occurs where:
Chapter 10 - Basic Macroeconomic Relationships
40. Which of the following relations is not correct?
41. The saving schedule is drawn on the assumption that as income increases:
42. At the point where the consumption schedule intersects the 45-degree line:
Chapter 10 - Basic Macroeconomic Relationships
43. The saving schedule is such that as aggregate income increases by a certain amount
saving:
44. If the consumption schedule is linear, then the:
45. Given the consumption schedule, it is possible to graph the relevant saving schedule by:
Chapter 10 - Basic Macroeconomic Relationships
46. If the marginal propensity to consume is .9, then the marginal propensity to save must be:
47. The greater is the marginal propensity to consume, the:
48. If the saving schedule is a straight line, the:
Chapter 10 - Basic Macroeconomic Relationships
49. Which one of the following will cause a movement up along an economy's saving
schedule?
50. In the late 1990s the U.S. stock market boomed, causing U.S. consumption to rise.
Economists refer to this outcome as the:
51. The wealth effect is shown graphically as a:
Chapter 10 - Basic Macroeconomic Relationships
52. Refer to the above graph. A movement from b to a along C1 might be caused by a:
53. Refer to the above graph. A shift of the consumption schedule from C1 to C2 might be
caused by a:
Chapter 10 - Basic Macroeconomic Relationships
54. Refer to the above graph. A movement from a to b along C1 might be caused by a:
55. Refer to the above graph. A shift of the consumption schedule from C2 to C1 might be
caused by a(an):
56. An upward shift of the saving schedule suggests:
