Which of the following events will make the consumption function steeper?

An increase in real GDP
An increase in unplanned inventory investment
A decrease in the marginal propensity to save
An increase in disposable income

The consumption function shifts if each of the following events occur except ____________________.

a decrease in the interest rate
an increase in the expected future disposable income
an increase in disposable income
an increase in autonomous consumption

If the slope of a saving function is 0.27, then the marginal propensity to ____________.

consume is 0.27
import is less than 0.27
consume is 0.73
save is 0.73

An increase in expected future disposable income _____________________.

decreases consumption expenditure
increases saving
shifts the consumption function upward
shifts the saving function upward

As disposable income decreases, there is a ___________________.

leftward shift of the saving function
change in the slope of the saving function
movement along the saving function
rightward shift of the saving function

As autonomous expenditure increases, ________________________.

the AE curve become steeper
the AE curve does not change
the AE curve shifts upward
there is a movement up along the AE curve

The figure shows Tropical Isle's aggregate planned expenditure curve. When aggregate planned expenditure is 15 billion seashells, aggregate planned expenditure is __________ than real GDP, firms' inventories ___________, and firms _____________ their output.

less; decrease; increase
less; increase; decrease
greater; decrease; increase
greater; increase; decrease

When the price level is fixed and investment increases by $100, equilibrium expenditure increases by $500.

The multiplier is 5.0.
The slope of the AE curve is 0.2.
The multiplier is 0.2.
Both the marginal propensity to consume and the multiplier are 0.2.

The larger the marginal propensity to consume, _________________.

the greater is the value of the multiplier
the flatter is the consumption function
the greater is slope of the saving function
the smaller is the value of the multiplier

An increase in ________________ shifts the AE curve _______________ and an increase in __________________ shifts the aggregate demand curve ___________________.

the price level; downward; autonomous expenditure; rightward
autonomous expenditure; upward; the price level; leftward
the price level; upward; autonomous expenditure; leftward
autonomous expenditure; upward; the price level; rightward

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