19. If the actual level of income is 36, what would be the resulting unplanned inventory investment? (a) -2 (b) zero (c) 2 (d) 4 (e) 5

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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QUESTION 19
40
36
32
28
24
20
16
12
8
4
0
-4
E,Q
F
16
19. If the actual level of income is 36, what would be the resulting unplanned inventory investment?
O (a) -2
O (b) zero
O (c) 2
(d) 4
(e) 5
24
32
40
QUESTION 20
20. According to Keynes's Consumption function,
a) Consumption spending is a function of disposable (after-tax) income (Yd).
b) There cannot be any consumption without disposable income.
c) Total consumption spending is composed of autonomous consumption, independent of income (Ca), and induced consumption, determined by disposable income.
d) The induced consumption component is equal to a constant proportion of disposable income.
e) The induced consumption is equal to the marginal propensity to consume times disposable income
Of) The consumption function Is modified in the Lecture Notes to a simplified version where consumption is a function of real income.
Og) Autonomous consumption cannot be changed by other factors.
AE
S
+Q
Transcribed Image Text:QUESTION 19 40 36 32 28 24 20 16 12 8 4 0 -4 E,Q F 16 19. If the actual level of income is 36, what would be the resulting unplanned inventory investment? O (a) -2 O (b) zero O (c) 2 (d) 4 (e) 5 24 32 40 QUESTION 20 20. According to Keynes's Consumption function, a) Consumption spending is a function of disposable (after-tax) income (Yd). b) There cannot be any consumption without disposable income. c) Total consumption spending is composed of autonomous consumption, independent of income (Ca), and induced consumption, determined by disposable income. d) The induced consumption component is equal to a constant proportion of disposable income. e) The induced consumption is equal to the marginal propensity to consume times disposable income Of) The consumption function Is modified in the Lecture Notes to a simplified version where consumption is a function of real income. Og) Autonomous consumption cannot be changed by other factors. AE S +Q
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