Macro Economics Ch 10,11,12,13 (Test 3)

In: Business and Management

Submitted By consuela
Words 2684
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Question 1 .1 out of 1 points If the price level rises,Answer
Selected Answer: e. the aggregate expenditures line shifts downward; the economy moves upward along the aggregate demand curve
Correct Answer: e. the aggregate expenditures line shifts downward; the economy moves upward along the aggregate demand curve . Question 2 .1 out of 1 points If autonomous investment expenditures decline because of higher interest ratesAnswer
Selected Answer: d. aggregate demand increases
Correct Answer: d. aggregate demand increases . Question 3 .1 out of 1 points In an economy without a government and without international transactions, aggregate expenditure at each level of income is equal toAnswer
Selected Answer: c. consumption plus planned investment
Correct Answer: c. consumption plus planned investment . Question 4 .1 out of 1 points A decrease in the price level will have which of the following effects?Answer
Selected Answer: d.
There will be downward movement along a particular aggregate demand curve.
Correct Answer: d.
There will be downward movement along a particular aggregate demand curve. . Question 5 .1 out of 1 points If people spend 2/3 of any extra income they receive, new autonomous spending of $10 causes equilibrium to increase byAnswer
Selected Answer: a.
Correct Answer: a.

. Question 6 .1 out of 1 points If the marginal propensity to consume in your classmate's nation is 3/5 and the marginal propensity to save in your country is 1/10, which of the following must be true?Answer
Selected Answer: b.
The spending multiplier is smaller…...

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