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You are watching: The slope of the consumption function is the

1) Solution: marginal propensity to consume Explanation: The usage function's slope amounts to the marginal pro…View the complete answer
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Transcribed photo text: The slope of the consumption duty is same to the a. Saving function. B. Price of interest. C. Multiplier. D. Marginal propensity come consume. E. Mean propensity come consume. E. Difficult to identify from the data. 4. If a family's disposable revenue is $100,000 and the quantity it saves is $35,000, the a. Marginal propensity to save is 0.53. B. Mean propensity come consume is 0.65. C. Mean propensity come consume is 1.50. D. Marginal propensity come consume is 0.65. E. Marginal plus mean propensity to consume equal 1. 5. The saving duty assumes that personal saving depends generally on a. Interest rates. B. The quantity of investment. C. The difference between the average and marginal propensity to consume. D. The unemployment rate. E. Disposable income. 6. The expression 1/MPS is dubbed a. The marginal propensity come consume. B. The multiplier. C. The saving function. D. The marginal propensity to save. E. The median propensity to consume. The question below is based on the following information because that a society: Disposable earnings ($ in billion) consumption (S in billion) 1,800 1,900 2,000 1,656 1,740 1.820 7. If disposable income is $2,000 billion, the median propensity to consume is: a. 0.91. B. 0.84. C. 1.00 d. 1.08 e. 0.89. 8. The relationship in between household disposable income and spending is well-known as the a. Conserving function. B. Invest function. C. Multiplier d. Gross residential product. E. Intake function. 9. The government may effort to alleviate unemployment through a. Changing the accumulation demand curve to the left. B. Moving the aggregate supply curve come the left. C. Increasing government spending. D. Decreasing government spending. E. Reducing personal spending. 10. According to the Keynesian view, the short-run aggregate curve is 1 a. Bottom sloping. B. Horizontal c. Dependence on the shape of the aggregate demand curve. D. Close come vertical. E. Increase sloping 11. Using the taxing and also the spending powers of federal government to stabilize the economic situation is called: a. Finance b. Reserve. C. Monetary policy. D. Fiscal plan e. Fitness 13. The federal government can usage fiscal plan to reduce inflation by: a. Boosting the spending plan deficit. B. Increasing full spending. C. Raising the tax rate on an individual income. D. Increasing the government expenditures. E. Modifying the tax regulations to induce less personal saving. 22. Supply-side inflation is finest illustrated by a a. Leftward change in the accumulation demand curve. B. Rightward change in the accumulation demand curve. C. Rightward change in the aggregate supply curve. D. Simultaneous rightward change in the accumulation supply curve and also a leftward change in the accumulation demand curve. E. Leftward transition in the aggregate supply curve. 25. Our money supply, narrowly defined, is composed of a. Money produced by the commercial banks. B. Cash, checks, and also near money. C. Coins, record money, every checkable deposits, and also gold. D. Currency, checking accounts, to save accounts, and also money industry mutual funds. E. Coins, currency, need deposits, and also other can be harvested deposits. 29. When money serves together a usual denominator for measuring the exchange rates among goods and also services, the performs together a a. Keep of value. B. Tool of exchange. C. Measure up of "fiat." d. Standard of value. E. Traditional of intrinsic worth. 30. The sum of coins, currency, need deposits, and also other can be harvested deposits is called: a. In the name GDP b. Real GDP c. Nationwide income. D. Cash e. MI. 35. Once the Fed (Federal reserve System) sells federal government securities ~ above the open up market, a. The nationwide debt decreases. B. Bank reserves decrease. C. Bank deposits decrease. D. The Treasury room realizes a profit. E. Interest rates rise.