Study Game - Topic 3.2

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Multipliers

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HS4

Economics

multipliers

Âge recommandé: 17 ans

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Zachary Foust

United States

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Study Game - Topic 3.2Version en ligne Multipliers par Zachary Foust 1 Assume the marginal propensity to consume is 0.8. How will a decrease in taxes of $100 billion and a decrease in government spending of $100 billion affect aggregate demand? a Aggregate demand will decrease by $900 billion. b Aggregate demand will decrease by $500 billion. c Aggregate demand will decrease by $400 billion. d Aggregate demand will decrease by $100 billion. 2 The table shows the level of household savings at various levels of disposable income in a country. Based on the level of savings and disposable income data in the table above, which of the following must be true? a The marginal propensity to save is 0.2. b The marginal propensity to save is 0.9. c The marginal propensity to consume is 0.1. d The marginal propensity to consume is 0.9. e The marginal propensity to save is 0.2. f The marginal propensity to save is 0.9. 3 The table shows the level of household savings at various levels of disposable income in a country. Based on the data on savings and disposable income in the table above, what are the income tax multiplier and the spending multiplier? a The tax multiplier is 0.1 and the spending multiplier is 0.9. b The tax multiplier is 0.2 and the spending multiplier is 0.8. c The tax multiplier is 2 and the spending multiplier is 8. d The tax multiplier is 9 and the spending multiplier is 10. 4 If the marginal propensity to consume (MPC) is 0.8, what is the marginal propensity to save (MPS)? a 0.2 b 0.25 c 0.5 d 0.1 5 If the marginal propensity to consume (MPC) is 0.8, what is the expenditure multiplier? a 2 b 0.2 c 5 d 8 6 If the marginal propensity to consume (MPC) is 0.8, and the government increases spending by $100 billion, what is the maximum change in spending? a $80 billion b $400 billion c $500 billion d $800 billion 7 Which of the following statements is true? a The expenditure multiplier is smaller than the tax multiplier. b The maximum change in spending is greater than the autonomous change in spending. c The expenditure multiplier is equal to the tax multiplier. d The marginal propensity to save is greater than 1. 8 If the marginal propensity to consume (MPC) is 0.8, and the government cuts taxes by $100 billion, what is the maximum change in spending? a $250 billion b $400 billion c $500 billion d $800 billion 9 How will an increase in the marginal propensity to consume affect the expenditure multiplier? a The expenditure multiplier will increase. b The expenditure multiplier will decrease. c The expenditure multiplier will remain unchanged d The expenditure multiplier will equal 0. 10 How will an increase in the marginal propensity to save affect the expenditure multiplier? a The expenditure multiplier will increase. b The expenditure multiplier will decrease. c The expenditure multiplier will remain unchanged d The expenditure multiplier will equal 0. 11 What is disposable income? a Income plus government transfers minus taxes b The total amount of before tax income c Income from salaries, tips, and dividends d The total amount of income spent on goods and services 12 What is the marginal propensity to consume (MPC)? a The portion of each additional dollar of disposable income that is saved b The portion of each additional dollar of disposable income that is spent c The percent of total disposable income that is spent d The percent of total disposable income that is saved 13 What is the marginal propensity to save (MPS)? a The portion of each additional dollar of disposable income that is saved b The portion of each additional dollar of disposable income that is spent c The percent of total disposable income that is spent d The percent of total disposable income that is saved 14 What is the expenditure multiplier? a The price level multiplied by the total amount of spending b The total amount of spending multiplied by 100 c The ratio of saving to spending d The number of times that an initial amount of spending will multiply 15 What is the tax multiplier? a The factor by which a change in tax collections changes real GDP b 1/(1 - MPC) c The paying of both income taxes and sales taxes d A number that is always positive

Study Game - Topic 3.2Version en ligne

Multipliers

par Zachary Foust

Assume the marginal propensity to consume is 0.8. How will a decrease in taxes of $100 billion and a decrease in government spending of $100 billion affect aggregate demand?

Aggregate demand will decrease by $900 billion.

Aggregate demand will decrease by $500 billion.

Aggregate demand will decrease by $400 billion.

Aggregate demand will decrease by $100 billion.

The table shows the level of household savings at various levels of disposable income in a country. Based on the level of savings and disposable income data in the table above, which of the following must be true?

The marginal propensity to save is 0.2.

The marginal propensity to save is 0.9.

The marginal propensity to consume is 0.1.

The marginal propensity to consume is 0.9.

The marginal propensity to save is 0.2.

The marginal propensity to save is 0.9.

The table shows the level of household savings at various levels of disposable income in a country. Based on the data on savings and disposable income in the table above, what are the income tax multiplier and the spending multiplier?

The tax multiplier is 0.1 and the spending multiplier is 0.9.

The tax multiplier is 0.2 and the spending multiplier is 0.8.

The tax multiplier is 2 and the spending multiplier is 8.

The tax multiplier is 9 and the spending multiplier is 10.

If the marginal propensity to consume (MPC) is 0.8, what is the marginal propensity to save (MPS)?

0.2

0.25

0.5

0.1

If the marginal propensity to consume (MPC) is 0.8, what is the expenditure multiplier?

0.2

If the marginal propensity to consume (MPC) is 0.8, and the government increases spending by $100 billion, what is the maximum change in spending?

$80 billion

$400 billion

$500 billion

$800 billion

Which of the following statements is true?

The expenditure multiplier is smaller than the tax multiplier.

The maximum change in spending is greater than the autonomous change in spending.

The expenditure multiplier is equal to the tax multiplier.

The marginal propensity to save is greater than 1.

If the marginal propensity to consume (MPC) is 0.8, and the government cuts taxes by $100 billion, what is the maximum change in spending?

$250 billion

$400 billion

$500 billion

$800 billion

How will an increase in the marginal propensity to consume affect the expenditure multiplier?

The expenditure multiplier will increase.

The expenditure multiplier will decrease.

The expenditure multiplier will remain unchanged

The expenditure multiplier will equal 0.

How will an increase in the marginal propensity to save affect the expenditure multiplier?

The expenditure multiplier will increase.

The expenditure multiplier will decrease.

The expenditure multiplier will remain unchanged

The expenditure multiplier will equal 0.

What is disposable income?

Income plus government transfers minus taxes

The total amount of before tax income

Income from salaries, tips, and dividends

The total amount of income spent on goods and services

What is the marginal propensity to consume (MPC)?

The portion of each additional dollar of disposable income that is saved

The portion of each additional dollar of disposable income that is spent

The percent of total disposable income that is spent

The percent of total disposable income that is saved

What is the marginal propensity to save (MPS)?

The portion of each additional dollar of disposable income that is saved

The portion of each additional dollar of disposable income that is spent

The percent of total disposable income that is spent

The percent of total disposable income that is saved

What is the expenditure multiplier?

The price level multiplied by the total amount of spending

The total amount of spending multiplied by 100

The ratio of saving to spending

The number of times that an initial amount of spending will multiply

What is the tax multiplier?

The factor by which a change in tax collections changes real GDP

1/(1 - MPC)

The paying of both income taxes and sales taxes

A number that is always positive