Biology Forums - Study Force

Which of the following changes in taxes would lead to the greatest increase in consumption?
 a. a 20,000 decrease in taxes, if MPC equals 0.5
  b. a 12,000 decrease in taxes, if MPC equals 0.75
  c. a 15,000 decrease in taxes, if MPC equals 0.6
  d. a 30,000 decrease in taxes, if MPC equals 0.25

Question 2

The U.S. government deficit as a percentage of GDP was much larger during World War II than it was in the 1980s and 1990s.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 3

Sellers who were originally willing to supply 800 units of a good at 4 per unit are now willing to supply 600 units at 4 per unit. That change would be described as:
 a. an increase in supply.
 b. a decrease in supply.
 c. an increase in quantity supplied.
  d. a decrease in quantity supplied.

Question 4

Which of the following changes in disposable income would lead to the smallest increase in consumption?
 a. a 20,000 increase in disposable income, if MPC equals 0.5
  b. a 12,000 increase in disposable income, if MPC equals 0.75
  c. a 15,000 increase in disposable income, if MPC equals 0.6
  d. a 30,000 increase in disposable income, if MPC equals 0.25

Question 5

Empirical evidence suggests that the United States ran close to a balanced budget during the World War II.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 6

Which of the following is not a determinant of supply?
 a. input prices
 b. technology
 c. tastes
 d. expectations

Question 7

Which of the following changes in disposable income would lead to the greatest increase in consumption?
 a. a 20,000 increase in disposable income, if MPC equals 0.5
  b. a 12,000 increase in disposable income, if MPC equals 0.75
  c. a 15,000 increase in disposable income, if MPC equals 0.6
  d. a 30,000 increase in disposable income, if MPC equals 0.25

Question 8

If crowding out exists, contractionary fiscal policy will cause the aggregate demand curve to shift in by more than indicated by the government spending multiplier.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 9

Which of the following is true?
 a. A decrease in the price of ice cream would cause a decrease in the demand for frozen yogurt, a substitute.
 b. Just as demanders will demand more now if the price of a good is expected to rise in the near future, sellers will supply more now if the price of a good is expected to rise in the near future.
  c. An increase in supply leads to a movement up along the supply curve.
 d. Both technological progress and cost-increasing regulations will increase supply.

Question 10

A given change in disposable income would have the smallest effect on aggregate demand with which of the following marginal propensities to consume?
 a. 0.4
  b. 0.6
  c. 0.8
  d. 0.2

Question 11

An increase in deficit spending tends to raise interest rates, thereby resulting in a multiplier effect that is higher than what would be associated with an equivalent increase in consumption spending.
 a. True
  b. False
  Indicate whether the statement is true or false

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Genius!!!!!!