This Macro Econ Final Review-Quiz focuses on key concepts of consumption and savings in macroeconomics. It tests understanding of Marginal Propensity to Consume (MPC), Marginal Propensity to Save (MPS), and Average Propensity to Consume (APC), crucial for economic analysis and decision making.
MPS= change in savings/ income
MPS= change in savings/ change in income
MPS= change in consumption/ change in income
MPS= savings/ income
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APS= savings/ income
APS= consumptions/ income
APS= change in savings/ change in income
APS= savings+consumption/ income
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MPC= change in consumption/ change in income
MPC= change in savings/ change in income
MPC= consumption/ income
None of the above
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The fraction or percentage of income consumed
The fraction or proportion of any change in income that is saved
The fraction or percentage of income saved
None of the above
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It decreases the incentive to borrow and consume and reduces the incentive to save.
It increases the incentive to borrow and consume and reduces the incentive to save.
It decreases the incentive to borrow and consume and increases the incentive to save.
None of the above
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Determines the cost of investment and represents either the cost of borrowed funds or the opportunity cost of investing your own funds
Represents the marginal cost
Can be found by comparing the expected economic profit
None of the above
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APC= consumption/ income
APC= change in consumption/ change in income
APC= savings/ income
APC can't be calculated
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The fraction or proportion of any change in income that is saved
The fraction or percentage of income consumed
The fraction or proportion of any change in income that is consumed
None of the above
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Shift the consumption schedule up and the saving schedule up
Shift the consumption schedule up and the saving schedule down
Shift the consumption schedule down and the saving schedule down
Shift the consumption schedule down and the saving schedule up
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The fraction or proportion of any change in income that is consumed
The fraction or percentage of income saved
The fraction or proportion of any change in income that is saved
The fraction or percentage of income consumed
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A non-rippling effect that generate large changes in real GDP
Determines the what the initial change in spending is
Determines how large the change between changes in spending and changes in real GDP will be.
All of the above
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Determines the cost of investment
The marginal benefit and the interest rate- the cost of borrowing funds- represents the marginal cost.
Represents the cost of borrowed funds
Represents the opportunity cost of investing your own funds
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Wealth, inflation, taxation, household debts and investments
Investments, wealth, household debt, consumption and expectations
Household debt, expectations, inflation, savings and soncumption
Wealth, expectations, real interest rates, household debt and taxation
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R= TR(total revenue) - TC (total cost) / investment
R= TC(total cost) - TR (total revenue) / investment
R= investment / TR(total revenue) - TC (total cost)
None of the above
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Consumption schedule will shift up and savings will shift down
Consumption schedule will shift up and savings will shift up
Consumption schedule will shift down and savings will shift up
Consumption schedule will shift down and savings will shift down
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Shift the consumption schedule down and the savings schedule up; vice versa for higher taxes
Shift the consumption schedule up and the savings schedule down; vice versa for higher taxes
Shift both schedules down since taxation affects both spending and saving; vice versa for higher taxes
Shift both schedules up since taxation affects both spending and saving; vice versa for higher taxes
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Multiplier= 1 / MPS
Multiplier= change in real GDP / initial change in spending
Multiplier= 1 / (1-MPC)
All the above
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Quiz Review Timeline (Updated): Mar 14, 2023 +
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