11.If disposable income is $800 billion when the average propensity to consume is 0.6, it can be concluded that saving is

• $320 billion.
• $480 billion.
• $800 billion.
• $48 billion.

12.Suppose that real domestic output in an economy is 144 units, the quantity of inputs is 12, and the price of each input is $4. The level of productivity is

• 12.
• 144.
• 10.
• 24.

13.If the marginal propensity to save is 0.1 in an economy, a $40 billion rise in investment spending will increase consumption by

• 360.
• 400.
• 40.
• 4.

14.If a $200 billion increase in investment spending creates $200 billion of new income in the first round of the multiplier process and $160 billion in the second round, the MPS in the economy is

Multiple Choice

• 0.2.
• 0.8.
• 0.1.
• 0.4.

15.Suppose the economy's multiplier is 2. Other things equal, a $30 billion decrease in government expenditures on national defense will cause equilibrium GDP to

• decrease by $60 billion.
• decrease by $240 billion.
• increase by $60 billion.
• decrease by $30 billion.
• remain unchanged.