Question 1

-How much is the MPC?

Accepted Answer

The answer of 
-How much is the MPC?...

Question 2

-Calculate the MPC.

Accepted Answer

MPC = $10,...

Question 3

-Calculate the MPS.

Accepted Answer

MPS = $12,...

Question 4

Suppose autonomous consumption is 3000,induced consumption is 500 and disposable income is 2500.We may conclude that the

Accepted Answer

A)  APC and APS are both negative.
B)  APC and APS are both positive.
C)  APC is positive and APS is negative.
D)  APS is positive and APC is negative.

Question 5

Which statement is false?

Accepted Answer

A)  Our savings rate may not have been so low were it not for Social Security.
B)  Widespread home ownership has lowered our savings rate.
C)  The U.S.suburban lifestyle has made it very difficult to save for most families.
D)  Our saving rate increased during the 1990's and early 2000's.

Question 6

In this graph,the MPC is

Accepted Answer

A)  .25.
B)  .5.
C)  .75.
D)  1.00.

Question 7

-How much savings when disposable income is $25 billion?

Accepted Answer

The answer of 
-How much savings when disposable income is...

Question 8

-How much is the APS when disposable income is $1200 billion?

Accepted Answer

The answer of 
-How much is the APS when disposable...

Question 9

C = $4.5 trillion
Disposable income = $5 trillion
Autonomous consumption = $3 trillion
-If the APS falls by .01 how much does total saving fall?

Accepted Answer

$5 trillio...

Question 10

When there is dissaving,the APC is

Accepted Answer

A)  greater than one.
B)  equal to one.
C)  less than one.

Question 11

-When disposable income is 4000,APC is about

Accepted Answer

A)  .55.
B)  .66.
C)  .77.
D)  .88.
E)  .99.

Question 12

According to the permanent income hypothesis,households will tend to react to a temporary tax cut by

Accepted Answer

A)  assuming the new tax level will be permanent.
B)  saving most of the additional disposable income.
C)  increasing consumption sharply in response to the higher disposable income.
D)  temporarily increasing their marginal propensity to consume.

Question 13

-In this graph,when consumption 2,500,savings is

Accepted Answer

A)  -2000.
B)  -1500.
C)  1000.
D)  0.

Question 14

If the MPC is three quarters,then an increase in disposable income will cause

Accepted Answer

A)  consumption to rise by three times the increase in disposable income.
B)  consumption to rise by four times the increase in disposable income.
C)  consumption to increase,while saving decreases.
D)  consumption to decrease,while saving increases.
E)  consumption and saving both to increase,with consumption increasing more than saving.

Question 15

-When disposable income is 3750,the APC is about

Accepted Answer

A)  .3.
B)  .45.
C)  .6.
D)  .75.
E)  .9.

Question 16

-How much is autonomous consumption when disposable income is $2 trillion?

Accepted Answer

A)  0
B)  $1 trillion
C)  $1.5 trillion
D)  $2 trillion

Question 17

For levels of disposable income to the left of the point where consumption intersects the 45-degree line

Accepted Answer

A)  Saving is negative.
B)  Disposable income exceeds consumption.
C)  Saving equals disposable income.
D)  Consumption equals disposable income.
E)  Saving equals consumption.

Question 18

At very low levels of disposable income,

Accepted Answer

A)  consumption is greater than disposable income.
B)  disposable income is greater than consumption.
C)  people save most of their incomes.
D)  consumption is negative.

Question 19

Compared to 1955,we spend ______ of every consumer dollar on services.

Accepted Answer

A)  slightly less
B)  substantially less
C)  slightly more
D)  substantially more

Question 20

When the APC is greater than one,

Accepted Answer

A)  the APS is negative.
B)  the APS is zero.
C)  the APS is positive.
D)  the APS may be positive,zero or negative.

Exam 5: The Household Consumption Sector

-How much savings when disposable income is $25 billion?

Correct AnswerverifiedShow Answer

In this graph,the MPC is

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-Calculate the MPC.

Correct AnswerverifiedMPC = $10,...View AnswerShow Answer

-How much is the MPC?

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-How much is autonomous consumption when disposable income is $2 trillion?

Correct AnswerverifiedShow Answer

C = $4.5 trillion Disposable income = $5 trillion Autonomous consumption = $3 trillion -If the APS falls by .01 how much does total saving fall?

Correct Answerverified$5 trillio...View AnswerShow Answer

Compared to 1955,we spend ______ of every consumer dollar on services.

Correct AnswerverifiedShow Answer

Which statement is false?

Correct AnswerverifiedShow Answer

-When disposable income is 4000,APC is about

Correct AnswerverifiedShow Answer

-Calculate the MPS.

Correct AnswerverifiedMPS = $12,...View AnswerShow Answer

-How much is the APS when disposable income is $1200 billion?

Correct AnswerverifiedShow Answer

-When disposable income is 3750,the APC is about

Correct AnswerverifiedShow Answer

When the APC is greater than one,

Correct AnswerverifiedShow Answer

When there is dissaving,the APC is

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At very low levels of disposable income,

Correct AnswerverifiedShow Answer

For levels of disposable income to the left of the point where consumption intersects the 45-degree line

Correct AnswerverifiedShow Answer

According to the permanent income hypothesis,households will tend to react to a temporary tax cut by

Correct AnswerverifiedShow Answer

-In this graph,when consumption 2,500,savings is

Correct AnswerverifiedShow Answer

Suppose autonomous consumption is 3000,induced consumption is 500 and disposable income is 2500.We may conclude that the

Correct AnswerverifiedShow Answer

If the MPC is three quarters,then an increase in disposable income will cause

Correct AnswerverifiedShow Answer

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MPC = $10,...
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$5 trillio...
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MPS = $12,...
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