Question 1

Assume a consumption function of the following form: C = 500 + .9Y. If income rises by $100, consumption will increase by

Accepted Answer

A)   $90.
B)   $550.
C)   $590.
D)   $600.E) A) and C)
F) B) and C)

Question 2

In the Keynesian model, changes in the money supply cause changes in

Accepted Answer

A)   saving.
B)   investment.
C)   government spending.
D)   aggregate supply.E) C) and D)
F) None of the above

Question 3

In the Keynesian model, a build-up of unwanted inventories leads to

Accepted Answer

A)   rising interest rates.
B)   falling unemployment.
C)   falling output.
D)   falling money wages.E) All of the above
F) None of the above

Question 4

Which of the following is not reflected in the constant term associated with the marginal propensity to consume?

Accepted Answer

A)   The level of C if Y were zero
B)   People's consumption with zero income
C)   All other influences on consumption besides income
D)   All of the above are reflected in the constant term.E) C) and D)
F) B) and C)

Question 5

In a simple Keynesian model, an increase in income leads to an increase in

Accepted Answer

A)   savings.
B)   investment.
C)   the price level.
D)   the money supply.E) None of the above
F) A) and C)

Exam 23: The Keynesian Framework

In a simple Keynesian model, an increase in income leads to an increase in

Correct Answer
verified

Which of the following is not reflected in the constant term associated with the marginal propensity to consume?

Correct Answer
verified

Assume a consumption function of the following form: C = 500 + .9Y. If income rises by $100, consumption will increase by

Correct Answer
verified

In the Keynesian model, changes in the money supply cause changes in

Correct Answer
verified

In the Keynesian model, a build-up of unwanted inventories leads to

Correct Answer
verified

Exam 23: The Keynesian Framework

In a simple Keynesian model, an increase in income leads to an increase in

Correct AnswerverifiedShow Answer

Which of the following is not reflected in the constant term associated with the marginal propensity to consume?

Correct AnswerverifiedShow Answer

Assume a consumption function of the following form: C = 500 + .9Y. If income rises by $100, consumption will increase by

Correct AnswerverifiedShow Answer

In the Keynesian model, changes in the money supply cause changes in

Correct AnswerverifiedShow Answer

In the Keynesian model, a build-up of unwanted inventories leads to

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified