If the consumption function is of the form C = 80 + 0.4Yd, the MPS equals Select one: A. -0.6. B. -0.4. C. 0.4. D. 0.6.   Given an MPC equal to 0.9, a decrease in business investment expenditures by RM25 billion translates into Select one: A. an increase of agregate output by RM250 billion B. a decrease of aggregate output by RM25 billion C. an increase of aggregate output by RM250 billion D. a decrease of aggregate output by RM250 billion   When income is equal to zero, consumption is equal to Select one: A. induced consumption B. aggregate consumption C. autonomous consumption D. endogeneous consumption

ENGR.ECONOMIC ANALYSIS
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Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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If the consumption function is of the form C = 80 + 0.4Yd, the MPS equals

Select one:
A. -0.6.
B. -0.4.
C. 0.4.
D. 0.6.
 

Given an MPC equal to 0.9, a decrease in business investment expenditures by RM25 billion translates into

Select one:
A. an increase of agregate output by RM250 billion
B. a decrease of aggregate output by RM25 billion
C. an increase of aggregate output by RM250 billion
D. a decrease of aggregate output by RM250 billion
 

When income is equal to zero, consumption is equal to

Select one:
A. induced consumption
B. aggregate consumption
C. autonomous consumption
D. endogeneous consumption
 

If the MPC in a country is 0.8, the simple Keynesian multiplier would be

Select one:
A. 0.8
B. 1.8
C. 0.2
D. 5.0
 

Which of the following is multiplier formula?

Select one:
A. 1/MPC
B. 1/MPS
C. 1/APC
D. 1/APS
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