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

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

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

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

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

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

An increase in expected future income _____________________.

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

As disposable income decreases, there is a ___________________.

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

As autonomous expenditure increases, ________________________.

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

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

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

the multiplier is 0.2
both the marginal propensity to consume and the multiplier are 0.2
the slope of the AE curve is 0.2
the multiplier is 5.0

The larger the marginal propensity to consume, _________________.

the greater is slope of the saving function
the smaller is the value of the multiplier
the flatter is the consumption function
the greater 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; upward; autonomous expenditure; leftward
autonomous expenditure; upward; the price level; rightward
autonomous expenditure; upward; the price level; leftward
the price level; downward; autonomous expenditure; rightward