Macro Chapter 8 exam review 2024
The MPC is *** the change in consumption divided by the change in income
The MPS is *** the change in saving divided by the change in income
Savings equal *** Y-C
If the MPS is .60 the MCS *** is .40
If you earn additional $500 in disposable income one week for painting your
neighbors house *** the total of your consumption and saving will increase by
$500
If Logan recieved a $2500 bonus and his MPS is 0.20, his consumtion rises by
$_______ and his savings rises by $___________ *** 2,000 , 500
Saving is a ______ variable and savings is a ______variable *** flow ; stock
Uncertainty about the future is likely to *** decrease current spending
Higher interest rates are likely to *** decrease consumer spending and increase
consumer saving
Consumption is *** a positively related to household income and wealth and
households expectations about the future, but negatively related to interest rates
In a closed economy with no government, aggregate expenditure is ***
consumption plus investment
If Wanda's income is reduced to zero after she loses her job, her consumtion will
be ________ and her saving will be _______ *** greater than zero ; less than
zero
,Refer to Figure 8.1 The MPS for this household is ________ and the MPC is
_______ *** 0.5 ; 0.5
Refer to Figure 8.1 The equation for this household's saving function is *** S = -
500 + .5Y
Refer to Figure 8.1 At income level $1,500, this household's saving is ______ than
(to) zero and this household's consumption is _______zero. *** greater than ;
greater than
Refer to Figure 8.1 This household's consumption function is *** C = 500 +
0.5Y
Refer to Figure 8.1 This household saves -$300 at an income level of *** $400
Refer to Figure 8.1. This household consumes $2,000 at an income level of ***
$3,000
Refer to Figure 8.1 An increase in the amount of consumption this household
makes when this household's income is zero *** shifts the saving function
downward
Reger to Figure 8.1 An Increase in the MPC *** makes the saving function
flatter
Refer to Figure 8.2. The line segment BD represents Jerry's *** consumption
when income equals zero
Refer to Figure 8.2. Jerry's consumption equals his income at Point *** A
Refer to Figure 8.2. Jerry's saving equals zero at income level *** Y1
Refer to Figure 8.2. Along the line segment AC, Jerry's *** saving is positive
, Refer to Figure 8.2 Along the segment AB, Jerry's *** saving is negative
Refer to Figure 8.2 Positive saving occurs along the line segment *** AC
Refer to Figure 8.2 An increase in Jerry's income is represented by *** a
movement from Point B to Point A
Refer to Figure 8.2 Suppose Jerry's MPC increases. At income Y1, Jerry's ***
consumption will be greater than his income
The fraction of a change in income that is consumed or spent is called *** the
marginal propensity to consume
If you save $80 when you experience a $400 rise in your income *** your MPC
is 0.80
If consumption is $30,000 when income is $35,000, and consumption increases to
$36,000 when income increases to $43,000, the MPC is *** 0.75
If consumption is $10,000 when income is $10,000, and consumption increases to
$11,000 when income increases to $12,000, the MPS is *** 0.50
Suppose consumption is $5,000 when income is $8,000 and the MPC equals 0.9.
When income increases to $10,000, consumption is *** $6,800
Suppose saving is $1,400 when income is $10,000 and the MPC equals 0.8. When
income increases to $12,000, saving is *** $1,800
Suppose consumption is $60,000 when income is $90,000 and the MPS equals
0.25. When income increases to $100,000 consumption is *** $1,800
If the MPS is .22, the MPC is *** 0.78
If the MPS is .05, the MPC is *** 0.95
The MPC is *** the change in consumption divided by the change in income
The MPS is *** the change in saving divided by the change in income
Savings equal *** Y-C
If the MPS is .60 the MCS *** is .40
If you earn additional $500 in disposable income one week for painting your
neighbors house *** the total of your consumption and saving will increase by
$500
If Logan recieved a $2500 bonus and his MPS is 0.20, his consumtion rises by
$_______ and his savings rises by $___________ *** 2,000 , 500
Saving is a ______ variable and savings is a ______variable *** flow ; stock
Uncertainty about the future is likely to *** decrease current spending
Higher interest rates are likely to *** decrease consumer spending and increase
consumer saving
Consumption is *** a positively related to household income and wealth and
households expectations about the future, but negatively related to interest rates
In a closed economy with no government, aggregate expenditure is ***
consumption plus investment
If Wanda's income is reduced to zero after she loses her job, her consumtion will
be ________ and her saving will be _______ *** greater than zero ; less than
zero
,Refer to Figure 8.1 The MPS for this household is ________ and the MPC is
_______ *** 0.5 ; 0.5
Refer to Figure 8.1 The equation for this household's saving function is *** S = -
500 + .5Y
Refer to Figure 8.1 At income level $1,500, this household's saving is ______ than
(to) zero and this household's consumption is _______zero. *** greater than ;
greater than
Refer to Figure 8.1 This household's consumption function is *** C = 500 +
0.5Y
Refer to Figure 8.1 This household saves -$300 at an income level of *** $400
Refer to Figure 8.1. This household consumes $2,000 at an income level of ***
$3,000
Refer to Figure 8.1 An increase in the amount of consumption this household
makes when this household's income is zero *** shifts the saving function
downward
Reger to Figure 8.1 An Increase in the MPC *** makes the saving function
flatter
Refer to Figure 8.2. The line segment BD represents Jerry's *** consumption
when income equals zero
Refer to Figure 8.2. Jerry's consumption equals his income at Point *** A
Refer to Figure 8.2. Jerry's saving equals zero at income level *** Y1
Refer to Figure 8.2. Along the line segment AC, Jerry's *** saving is positive
, Refer to Figure 8.2 Along the segment AB, Jerry's *** saving is negative
Refer to Figure 8.2 Positive saving occurs along the line segment *** AC
Refer to Figure 8.2 An increase in Jerry's income is represented by *** a
movement from Point B to Point A
Refer to Figure 8.2 Suppose Jerry's MPC increases. At income Y1, Jerry's ***
consumption will be greater than his income
The fraction of a change in income that is consumed or spent is called *** the
marginal propensity to consume
If you save $80 when you experience a $400 rise in your income *** your MPC
is 0.80
If consumption is $30,000 when income is $35,000, and consumption increases to
$36,000 when income increases to $43,000, the MPC is *** 0.75
If consumption is $10,000 when income is $10,000, and consumption increases to
$11,000 when income increases to $12,000, the MPS is *** 0.50
Suppose consumption is $5,000 when income is $8,000 and the MPC equals 0.9.
When income increases to $10,000, consumption is *** $6,800
Suppose saving is $1,400 when income is $10,000 and the MPC equals 0.8. When
income increases to $12,000, saving is *** $1,800
Suppose consumption is $60,000 when income is $90,000 and the MPS equals
0.25. When income increases to $100,000 consumption is *** $1,800
If the MPS is .22, the MPC is *** 0.78
If the MPS is .05, the MPC is *** 0.95
