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 real GDP
An increase in unplanned inventory investment

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

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

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

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

An increase in expected future income _____________________.

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

As disposable income decreases, there is a ___________________.

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

As autonomous expenditure increases, ________________________.

there is a movement up along the AE curve
the AE curve shifts upward
the AE curve become steeper
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.

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

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

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 multiplier is 0.2.

The larger the marginal propensity to consume, _________________.

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

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

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

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