A. raises the value of the multiplier
B. has no impact on the value of the multiplier?
C. rarely occurs because the MPC is set by congressional legislation
D. lowers the value of the multiplier
Related Mcqs:
- If the marginal propensity of consume MPC is 0.75 the value of the multiplier is ?
A. 4
B. 7.5
C. 5
D. 0.75 - If as the quantity produced increase a production function first exhibits increasing marginal product and later diminishing marginal product, the corresponding marginal-cost curve will ?
A. be flat (horizontal)
B. slope upward
C. slope downward
D. be U-shaped. - An increase in the marginal propensity to consume will ?
A. increase the size of the multiplier
B. Increase the marginal propensity to save
C. Decrease national income
D. Reduce injections into the economy - If an increase in a consumer’s income causes the consumer to increase his quantity demand of a good, then the good is ?
A. a complementary good
B. an inferior good
C. a normal good
D. a substitute good - The marginal propensity of consume is equal to ?
A. Total spending / total consumption
B. Total consumption / total income
C. Change in consumption / change in income
D. Change in consumption / change in savings - If the marginal propensity to consume on domestic products is 0.9 the size of the multiplier is ?
A. 10
B. 1
C. 9
D. 0.1 - The marginal propensity to withdraw is ?
A. 1/investment multiplier
B. 1-(1/injections multiplier
C. MPS + MPT + MPM
D. the proportion of national income that is withdraw from the circular flow of income - If the Keynesian consumption function is C = 10 + 0.8 Td when disposable income is Rs1000 the marginal propensity to consume is what ?
A. 0.8
B. 800
C. 810
D. 0.81 - The marginal propensity to consume is equal to ?
A. Total spending / total consumption
B. Total consumption / total income
C. change in consumption / change in income
D. Change in consumption / change in savings - The marginal propensity to save (MPS) is ?
A. the average amount of income that is saved
B. the fraction of a change in income that is saved
C. the ratio of saving to income
D. the ratio of income to saving
