A temporary increase in government expenditure will a. Shift the saving curve to the right b. Shift the investment curve to the right  c. Shift the investment curve to the left  d. Shift the saving curve to the left

Q: Suppose that business executives are very optimistic, and they raise their investment spending. What…

A: Keynesianism, due to its potential to ease economic downturns through government involvement, gained…

Q: a. Draw the circular flow of spending and income. Put a proper label on every box and flow. b.…

A: Circular flow of income is the flow of income from one sector to other sector.  When economy is…

Q: Consumption .C C2 Income A movement from C to C2 could be caused by: O A. A lower tax rate. B. A…

A: A movement from C1 to C2 is caused by a decrease in the marginal propensity to consume. So, option…

Q: The figure represents the consumption function for a consumer. The distance between C and D…

A: The diagram represents the consumption curve. The yellow line is the planned real consumption curve…

Q: י The following diagram presents a circular-flow model of a simple economy. The outer set of arrows…

A: Based on this model, households earn income when  firms purchase factors of production (labor) in…

Q: 9. In the aggregate expenditures model, a reduction in taxes may: Multiple Choice increase saving.…

A: The Aggregate Expenditures model is used to determine the level of GDP in the economy. When people…

Q: The sum of the marginal propensity to save and the marginal propensity to consume Select one: A.…

A: MPC stands for marginal propensity to consume. This measures the net change in the consumption…

Q: An increase in net taxes will O increase the household consumption. O increase the saving. O…

A: Household consumption is positively related to disposable income.  An increase in disposable income…

Q: Autonomous consumption is:

A: Consumption expenditure is the purchase of goods and services for the use by the people in an…

Q: Consider the circular flow of expenditure and income in the Canadian economy. Which of the following…

A: The circular flow of income and expenditure basically refers to the mechanism through which an…

Q: Disposable income ________ when ________. a. decreases; taxes increase b. decreases; transfer…

A: DISPOSABLE INCOME IS A NET INCOME , IT IS THE AMOUNT LEFT OVER AFTER TAX. IT IS ALSO KNOWNS AS…

Q: The table below provides Income and consumption Data in billions of dollars. Answer questions 21-24…

A: Savings =Disposable Income - Consumption Marginal Propensity to Save (MPS) = Change in Savings /…

Q: What is the effect of an increase in investment? When investment increases, O A. aggregate demand…

A: Investment is the part of aggregate demand.

Q: The Average Propensity to Save is:     A. the percentage of income that is saved   B. the…

A: When talking about average propensity based on income, it refers to the economic tool to find the…

Q: Which of the following will raise consumer expenditures, C? Select an answer and submit. For…

A: Consumer expenditure alludes to the aggregate/total sum of money spent by households to purchase…

Q: Which of the following is an example of an investment expenditure? A   Steve purchases a new power…

A: Investment Expenditure is the expenditure on purchase of capital goods by individual, firm and…

Q: What is induced spending? Select one: A. The portion of total spending that is dependent of the…

A: Economic analysis is the process of evaluating data and trends in order to better comprehend…

Q: For each form of government spending, indicate whether it represents consumption or investment.…

A: In economics, consumption refers to the use of goods and services by people to satisfy their…

Q: National economy is characterised by the following data: Private consumption C- 400 + 0.6*Y, Gross…

A: The National Income depicts the total income earned by normal residents during a year within or…

Q: e current a Country is 39,600 but the full employment GDP is considered to be $10,000. The marginal…

A: The equilibrium is reached when aggregate demand is equal to aggregate supply. There will be a…

Q: You are told that taxes in this economy are equal to 100. What is the value of autonomous…

A: Autonomous consumption: Autonomous consumption is defined as consumption spending that occurs when…

Q: An increase in the taxes that firms pay will a. Shift the saving curve to the left  b. Shift the…

A: Investment demand curve shows the inverse relationship between dollar amount of investment at…

Q: n an economy investment increases by 120 crores. The value of multiplier is 4. Calculate the…

A: Increase in investment = 120 crores. Value of multiplier = 4

Q: In an economy, investment increased by 1,100 and as a result of it, income increased by 5,500. Had…

A: In economics, the link between consumer spending and the different factors that influence it is…

Q: 15. With the economy in a recession due to inadequate demand, the government increases its purchase…

A: Aggregate demand is a sum of consumption spending, investment spending, government purchases and net…

Q: he change in consumption divided by the change in disposable income is equal to     A. household…

A: Disposable income refers to income that is left after paying all personal taxes. Diposable income =…

Q: What is investment? A. Expenditure on goods produced but not consumed during the period under…

A: Investment refers to the allocation of resources, typically money, towards the purchase or…