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Assume a model with no government or foreign sector. If national income is Y = 800, autonomous consumption is Co = 100, and the marginal propensity to consume is c = 0.7, then total consumption is

A. 100
B. 560
C. 660
D. 700
E. 800

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Assume a simple model of the expenditure sector with no income taxes. If a lump sum tax decrease of 200 leads to an increase in income of 800, what is the size of the mps?

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

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If autonomous investment increases by 100 and government purchases decrease by 100, which of the following is true?

A. income will increase by 100
B. income will increase by 200
C. income will increase by the multiplier times 100
D. income will decrease by the multiplier times 100
E. income will not change

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Assume a model with no government, where consumption is the only component of aggregate demand. If the consumption function is of the form C = 400 + (0.9)Y, what is the equilibrium level of consumption?

A. 400
B. 1
C. 1600
D. 3600
E. 4000

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Assume a model of the expenditure sector with no government or foreign sector. If the savings function is defined as S = - 300 + (0.1)Y and autonomous investment increases by 200, by how much will consumption increase?

A. 180
B. 200
C. 1800
D. 2000
E. 2100

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Assume a model with no government or foreign sector. If national income is Y = 800, autonomous consumption is Co = 100, and the marginal propensity to consume is c = 0.7, then total consumption is

A. 100 B. 560 C. 660 D. 700 E. 800

Assume a simple model of the expenditure sector with no income taxes. If a lump sum tax decrease of 200 leads to an increase in income of 800, what is the size of the mps?

If autonomous investment increases by 100 and government purchases decrease by 100, which of the following is true?

Assume a model with no government, where consumption is the only component of aggregate demand. If the consumption function is of the form C = 400 + (0.9)Y, what is the equilibrium level of consumption?

Assume a model of the expenditure sector with no government or foreign sector. If the savings function is defined as S = - 300 + (0.1)Y and autonomous investment increases by 200, by how much will consumption increase?

A. 100
B. 560
C. 660
D. 700
E. 800