the economics of money, banking, and financial markets

688 #

© 2014 Pearson Canada Inc.#

39. 
    

    If net exports decrease by 250 and the mpc is 0.75, equilibrium aggregate output ____.
    A) increases by 1000
    B) increases by 750
    C) decreases by 750
    D) decreases by 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

    
    


40. 
    

    Aggregate output is ____ related to autonomous consumer expenditure, and is
    ____ related to planned investment spending.
    A) negatively; negatively
    B) negatively; positively
    C) positively; negatively
    D) positively; positively
    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

    
    


41. 
    

    Aggregate output is ____ related to autonomous consumer expenditure, and is
    ____ related to the level of taxes.
    A) negatively; negatively
    B) negatively; positively
    C) positively; negatively
    D) positively; positively
    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

    
    


42. 
    

    Aggregate output is increased by a decrease in ____.
    A) autonomous consumption
    B) government spending
    C) planned investment
    D) net taxes
    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