A budget surplus

occurs when government expenditures exceed tax revenues.

occurs when tax revenues exceed government expenditures.

occurs when tax revenues exceed transfer payments.

occurs when monetary policy works in the opposite direction of fiscal policy.

is an impossibility.

If consumers spend _____ of a change in their disposable income, then a tax increase of $100 would lower saving by $40.

20 percent 40 percent 60 percent

80 percent

70 percent

If Oscar's MPC is 0.95 and he earns an additional $2,000, how much would he save?

$100

$1,900

$2,105

$40,000

Which of the following changes in disposable income would lead to the greatest increase in consumption?

a $20,000 increase in disposable income, if MPC equals 0.5

a $12,000 increase in disposable income, if MPC equals 0.75

a $15,000 increase in disposable income, if MPC equals 0.7

a $30,000 increase in disposable income, if MPC equals 0.25

Bill's disposable income goes from $100,000 in 2010 to $200,000 in 2011, and his consumption spending goes from $80,000 in 2010 to $150,000 in 2011. Other things being equal, which of the following statements about Bill is true?

Bill's MPC rose between 2010 and 2011.

Bill's MPC is equal to 0.7.

Bill's MPC is equal to 0.6.

Bill's MPS rose between 2010 and 2011.