A decrease in demand and an increase in supply are indicated by

A decrease in demand and an increase in supply are indicated by
 a. Upward shifts in both curves.
 b. Downward shifts in both curves.
  c. Rightward shifts in both curves.
  d. Leftward shifts in both curves.

Question 2

A given change in disposable income would have the greatest 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 3

If the private sector anticipates higher future taxes as a result of a current budget deficit, current autonomous saving will decline.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 4

Downward shifts are
 a. increases in both demand and supply.
 b. decreases in both demand and supply.
 c. increases in demand and decreases in supply.
  d. increases in supply and decreases in demand.

Question 5

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

Question 6

According to Ricardian equivalence, taxation and government borrowing have the same effect on spending in the private sector.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 7

Upward shifts are
 a. increases in both demand and supply.
 b. decreases in both demand and supply.
 c. increases in demand and decreases in supply.
  d. increases in supply and decreases in demand.

Question 8

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

Question 9

A balanced budget would not affect income because an increase in government spending is exactly matched by an increase in taxes.
 a. True
  b. False
  Indicate whether the statement is true or false

Question 10

Which of the following would lead to a decrease in the supply of watches?
 a. An increase in the price of watches
 b. A decrease in the price of watches
 c. A decrease in the expected future price of watches
  d. None of the above

Question 11

Bill's disposable income goes from 100,000 in 2010 to 200,000 in 2011, and his consumption spending goes from 80,000 in 2010 to 140,000 in 2011 . Which of the following statements about Bill is true?
 a. Bill's MPC rose between 2010 and 2011.
  b. Bill's MPC is equal to 0.7.
 c. Bill's MPC is equal to 0.6.
 d. Both (a) and (b) are true.

Question 12

Higher taxes affect real GDP indirectly through both the consumption channel and the output supply channel.
 a. True
  b. False
  Indicate whether the statement is true or false