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Gillespie: Foundations of Economics 2e

Unit 23

Instructions

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Question 1

If the marginal propensity to consume domestic products is 0.9 the size of the multiplier is:

Question 2

An increase in the marginal propensity to consume will:

Question 3

If the Keynesian consumption function is C = 10 + 0.8 Yd then when disposable income is £1000, what is total consumption?

Question 4

If the Keynesian consumption function is C = 10 + 0.8 Yd then when disposable income is £1000, what is the marginal propensity to consume?

Question 5

If the Keynesian consumption function is C = 10 + 0.8 Yd then when disposable income is £1000, what is the average propensity to consume?

Question 6

As income increases:

Question 7

An increase in consumption at any given level of income is likely to lead to:

Question 8

Lower interest rates are likely to:

Question 9

Friedman's theory of consumption focuses on:

Question 10

The marginal propensity to consume is equal to: