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| 1 | |
If the MPE is equal to 0.4, what is the value of the MLR? |
| | A) | 0.6 |
| | B) | 2.5 |
| | C) | 0.4 |
| | D) | 40 |
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| 2 | |
If the MPE is equal to 0.4, what is the value of the multiplier? |
| | A) | 1.67 |
| | B) | 2.5 |
| | C) | 0.25 |
| | D) | 0.167 |
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| 3 | |
If X is an autonomous $90 (there are no autonomous imports) and the MPM is 0.2, what is the value of XN at an income of $500? |
| | A) | + $10 |
| | B) | - $10 |
| | C) | + $90 |
| | D) | + $590 |
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| 4 | |
What does the real-balances effect refer to? |
| | A) | The effect that a change in savings has on the real rate of interest |
| | B) | The level of income where it is exactly equal to the level of consumption |
| | C) | The effect that a change in interest rates has on the real value of savings |
| | D) | The effect that a change in the price level has on the real value of wealth |
| | E) | The effect of a change in consumption on the real value of wealth |
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| 5 | |
Which of the following variables in the expenditure model are wholly autonomous, and which are partly induced? |
| | A) | I, G, and S are autonomous; X, IM, and C are partly induced. |
| | B) | I, G, and C are autonomous; S, IM, and X are partly induced. |
| | C) | I, G, and X are autonomous; S, IM, and C are partly induced. |
| | D) | G, X, and IM are autonomous; S, C, and I are partly induced. |
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| 6 | |
Which two of the four components of aggregate expenditures are wholly autonomous? |
| | A) | C and I |
| | B) | C and G |
| | C) | I and G |
| | D) | I and XN |
| | E) | C and XN |
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| 7 | |
What happens to income earned in Canada? |
| | A) | It is spent on exports, imports, and investment, and saved. |
| | B) | It is spent on consumption, imports, and taxes, and saved. |
| | C) | It is spent on consumption, exports, and taxes, and saved. |
| | D) | It is spent on consumption, imports, taxes, and investment. |
| | E) | It is spent on imports, taxes, and government spending. |
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| 8 | |
Graphically, when is the balance of trade equal to zero? |
| | A) | When the rising IM line intersects the horizontal X line |
| | B) | When the rising X line intersects the horizontal IM line |
| | C) | When the rising IM line intersects the horizontal axis |
| | D) | When the rising X line intersects the horizontal axis |
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