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Q 1 If the CPI in year 2 equals 210 and the CPI in year 3...

Q 1 If the CPI in year 2 equals 210 and the CPI in year 3 equals 221, it can be concluded that consumer prices. The inflation rate rose from year 2 to year 3 by

Q51. The investment demand curve will shift to the left if:

a. the interest rate decreases.                                                   b. the interest rate increases.

c. expected returns on investment increase.                             d. business taxes increase.

Q54. The consumption schedule is:

A) an inverse relationship between consumption and the price level.

B) a direct relationship between consumption and disposable income.

C) an inverse relationship between consumption and saving.

D) an inverse relationship between consumption and the tax rate.

Q55. Along a specific saving schedule, each change in disposable income of $15 billion generates an additional $3 billion in saving. Therefore: A) the MPS is .3.               B) the MPS is 0.2.            C) the APC is .8.    D) the slope of the consumption schedule is 0.   

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Homework Answers

Answer #1

Q 1.

  

%.

Q 51. The changes in the interest rate is the movement along the investment demand curve and it does not shift the investment demand curve. When business tax is increased the investment demand decreases and the investment demand curve will shift to the left. The business tax gives the investors no incentive .

Ans: d) If the business taxes increase.

Q 54. The consumption schedule is a table showing the consumption expenditures and the income of the people. When the income of the people rises the consumption also rises , the income and the consumption expenditures have the direct relationship.

Ans: B) a direct relationship between consumption and disposable income.

Q 55.

MPS

Ans:

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