Question :
67) When U.S. real GDP increases, U.S. imports
A) decrease by : 1240596
67) When U.S. real GDP increases, U.S. imports
A) decrease by the same amount.
B) increase by the same amount.
C) increase by less than the change in real GDP.
D) decrease by less than the change in real GDP.
E) increase by more than the change in real GDP.
68) As real U.S. GDP increases, U.S. income increases and so
A) U.S. imports decrease.
B) U.S. exports decrease.
C) U.S. imports increase.
D) U.S. exports increase.
E) investment increases.
69) If the marginal propensity to import is ________, then a $2 trillion increase in disposable income would increase import expenditure by $0.2 trillion. If the marginal propensity to import is ________, then a $2 trillion increase in disposable income would increase import expenditure by $0.6 trillion.
A) 1.0; 3.0
B) 0.1; 0.3
C) 0.2; 0.6
D) 0.6; 2.0
E) 0.3; 0.1
70) Based on data from the U.S. economy, the marginal propensity to consume is about
A) 0.87.
B) 0.75.
C) 0.60.
D) 0.95.
E) 1.10.
71) The components of aggregate expenditure are consumption expenditure,
A) interest, gross spending, and net spending.
B) investment, government expenditure on goods and services, and net income.
C) interest, government expenditure on goods and services, and net exports.
D) investment, government expenditure on goods and services, and net exports.
E) investment, government expenditure on goods and services, and net taxes.
72) Which of the following is true?
A) Actual aggregate expenditure does not always equal real GDP.
B) Aggregate planned expenditure always equals real GDP.
C) Actual aggregate expenditure always equals real GDP.
D) Aggregate planned expenditure and actual aggregate expenditures both are always equal to real GDP.
E) Actual aggregate expenditure cannot be measured.
73) Autonomous expenditure is the component of
A) aggregate expenditure that changes when real GDP changes.
B) induced expenditure that changes when in real GDP changes.
C) aggregate planned expenditure that changes only when government expenditure on goods and services change.
D) aggregate expenditure that does not change when real GDP changes.
E) aggregate expenditure that does not change when the interest rate changes.
74) The components of aggregate expenditure that change when real GDP changes are known as
A) unplanned expenditure.
B) induced expenditure.
C) planned expenditure.
D) autonomous expenditure.
E) changeable expenditure.
75) The consumption function is the relationship between ________, other things remaining the same.
A) consumption expenditure and saving
B) consumption expenditure and the price level
C) consumption expenditure and disposable income
D) net taxes and disposable income
E) consumption expenditure and net taxes
76) When disposable income increases from $9 trillion to $10 trillion, consumption expenditure increases from $6 trillion to $6.8 trillion. The MPC is
A) 1.00.
B) 0.80.
C) 0.60.
D) 0.68.
E) $6.8 trillion.
