the economics of money, banking, and financial markets

687 #

© 2014 Pearson Canada Inc.#

35. 
    

    In a closed economy, aggregate demand is the sum of ____.
    A) consumer expenditure, actual investment spending, and government spending
    B) consumer expenditure, planned investment spending, and government spending
    C) consumer expenditure, actual investment spending, government spending, and net exports
    D) consumer expenditure, planned investment spending, government spending, and net exports
    Answer: B
    Diff: 2 Type: MC Page Ref: 546 - 547
    Skill: Applied
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

    
    


36. 
    

    In an open economy, aggregate demand is the sum of ____.
    A) consumer expenditure, actual investment spending, and government spending
    B) consumer expenditure, planned investment spending, and government spending
    C) consumer expenditure, actual investment spending, government spending, and net exports
    D) consumer expenditure, planned investment spending, government spending, and net exports
    Answer: D
    Diff: 2 Type: MC Page Ref: 546 - 547
    Skill: Applied
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

    
    


37. 
    

    If net exports increase by 100 and the mpc is 0.75, equilibrium aggregate output increases by
    ____.
    A) 100
    B) 250
    C) 400
    D) 750
    Answer: C
    Diff: 2 Type: MC Page Ref: 546 - 547
    Skill: Applied
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output

    
    


38. 
    

    If net exports increase by 250 and the mpc is 0.75, equilibrium aggregate output increases by
    ____.
    A) 250
    B) 500
    C) 750
    D) 1000
    Answer: D
    Diff: 2 Type: MC Page Ref: 546 - 547
    Skill: Applied
    Objective List: 22.1 Utilize the Keynesian cross model for the determination of aggregate output