Question : 61) An increase in expected future disposable income ________ consumption : 1238183

 

61) An increase in expected future disposable income ________ consumption expenditure and ________.

A) increases; shifts the consumption function upward

B) decreases; shifts the consumption function downward

C) increases; shifts the consumption function downward

D) decreases; shifts the consumption function upward

E) increases; results in a movement upward along the consumption function

62) In Germany, expected future income increased during 2010. This increase led to

A) a movement upward along the consumption function.

B) a movement downward along the consumption function.

C) an upward shift of the consumption function.

D) a downward shift of the consumption function.

E) no movement along the consumption function and no shift of the consumption function.

63) ________ shifts the consumption function upward.

A) A decrease in the marginal propensity to consume

B) An increase in the real interest rate

C) An increase in expected future disposable income

D) An increase in disposable income

E) An increase in the price level

64) When the economy enters an expansion of a business cycle, households become more optimistic about expected future disposable income. The increase in optimism leads to

A) a shift upward of the consumption function.

B) an increase in consumption expenditures.

C) no change in the level of consumption expenditures.

D) a movement upward along the consumption function.

E) a movement downward along the consumption function.

65) A decrease in wealth ________ consumption expenditure and ________.

A) increases; shifts the consumption function upward

B) decreases; shifts the consumption function downward

C) increases; shifts the consumption function downward

D) decreases; shifts the consumption function upward

E) decreases; results in a movement downward along the consumption function

66) Other things remaining the same, ________ in U.S. real GDP results in ________ in U.S. imports.

A) an increase; an increase

B) an increase; a decrease

C) a decrease; an increase

D) a decrease; no change

E) an increase; a decrease followed by no change

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.

 

 

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