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Assume a simple model without any government. If an increase in autonomous investment of 40 leads to an increase in consumption of 160, then the marginal propensity to save is

A. 0.1
B. 0.2
C. 0.25
D. 0.4
E. 0.8

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In a model with no government or foreign sector, if saving is defined as S = - 200 + (0.1)Y and investment is Io = 200, what is the equilibrium level of consumption?

A. 3800
B. 3600
C. 1800
D. 2000
E. 1000

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In a model with no government or foreign sector, if autonomous consumption is Co = 80, investment is Io = 70, and the marginal propensity to save is s = 0.25, equilibrium income is

A. 150
B. 200
C. 225
D. 600
E. 750

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The expenditure multiplier measures

A. the number of steps it takes to move from one equilibrium to another
B. the rise in saving resulting from a rise in income
C. the change in investment resulting from a change in income
D. the change in induced consumption caused by a change in income
E. none of the above

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When calculating the multiplier for government purchases (G), we

A. must know the marginal propensity to save (mps)
B. must know the income tax rate (t)
C. must know the average propensity to consume (apc)
D. can ignore the size of the marginal propensity to consume (mpc)
E. both A) and B)

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Assume a simple model without any government. If an increase in autonomous investment of 40 leads to an increase in consumption of 160, then the marginal propensity to save is

A. 0.1 B. 0.2 C. 0.25 D. 0.4 E. 0.8

In a model with no government or foreign sector, if saving is defined as S = - 200 + (0.1)Y and investment is Io = 200, what is the equilibrium level of consumption?

In a model with no government or foreign sector, if autonomous consumption is Co = 80, investment is Io = 70, and the marginal propensity to save is s = 0.25, equilibrium income is

The expenditure multiplier measures

When calculating the multiplier for government purchases (G), we

A. 0.1
B. 0.2
C. 0.25
D. 0.4
E. 0.8