Question : 51) Consider a consumption function in a simple macro model : 1384384

51) Consider a consumption function in a simple macro model with government and taxes. Given a marginal propensity to consume out of disposable income of 0.7 and a net tax rate of 30% of national income, the marginal propensity to consume out of national income is

A) 0.49.

B) 0.58.

C) 0.70.

D) 0.90.

E) 1.00.

52) Consider a simple macro model with a constant price level and demand-determined output. The marginal propensity to spend out of national income, z, can be expressed as ________ (where t = net tax rate and m = marginal propensity to import).

A) z = MPC(1 – t – m)

B) z = tY – mY

C) z = MPC – (1 – t- m)Y

D) z = MPC – (1 – t – m)

E) z = MPC(1 – t) – m

53) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 150 + 0.84Y, I = 400, G = 700, T = 0, X = 130, IM = 0.08Y. The marginal propensity to spend on national income, z, is

A) 0.655.

B) 0.760.

C) 0.773.

D) 0.840.

E) 0.920.

54) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 120 + 0.86Y, I = 300, G = 520, T = 0, X = 180, IM = 0.12Y. Total autonomous spending in this model is

A) 120.0.

B) 1120.0.

C) 420.0.

D) 600.0.

E) 828.8.

55) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 120 + 0.86Y, I = 300, G = 520, T = 0, X = 180, IM = 0.12Y. The vertical intercept of the AE function is

A) 120.0.

B) 420.0.

C) 600.0.

D) 828.8.

E) 1120.0.

56) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 120 + 0.86Y, I = 300, G = 520, T = 0, X = 180, IM = 0.12Y. A national income of 2400 results in desired aggregate expenditure of

A) 1120

B) 1776

C) 2896

D) 3184

E) 3472

57) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 60 + 0.43Y, I = 150, G = 260, T = 0, X = 90, IM = 0.06Y. The vertical intercept of the AE function is

A) 60.0.

B) 210.0.

C) 300.0.

D) 414.4.

E) 560.0.

58) Consider a simple macro model with a constant price level and demand-determined output. The equations of the model are: C = 60 + 0.43Y, I = 150, G = 260, T = 0, X = 90, IM = 0.06Y. A national income of 1200 results in desired aggregate expenditure of

A) 560.

B) 926.

C) 1004.

D) 1016.

E) 1148.

59) Consider the simplest macro model with a constant price level and demand-determined output. The equations of the model are: C = 60 + 0.43Y, I = 150, G = 260, T = 0, X = 90, IM = 0.06Y. The marginal propensity to spend on national income, z, is

A) 0.06.

B) 0.37.

C) 0.43.

D) 0.49.

E) 0.63.

60) Consider the simplest macro model with demand-determined output. The equations are: C = 150 + 0.8Yd, Yd = Y-T, I = 400, G = 700, T = .2Y, X = 130, and IM = 0.14Y. Autonomous expenditures in this model are

A) 1120.

B) 1350.

C) 1380.

D) 2700.

E) 5400.