l. The marginal propensity to consume is: A] the change in consurnption divided by the change in income. E} consumption divided by income. (3} the change in consurnption divided by the change in saving. D] The change in saving divided by the change in income. 2. The marginal propensity to save is 0.15, the marginal propensity to consume: {A} is 1.15. {B} is 0.35. {C} is 0.15. {D} cannot be determined by the given information. 3 . If Jack received a $1,000 bonUs and his marginal propensity to save is 0.15, his consumption rims by and his saving rises by {A}$150; $500 [E] $350; $150 {C} $150; 5350 {D} $1,000; $150 4. If you save $20 when you experience a $200 rise in your income: {A}your marginal propensity to save is 0.2. (E) your marginal propensity to consume is 0.9. {C} your marginal propensity to constune is 0.1. {D} your marginal propensity to consume is 0.3. 5. Ifconsurnption is $25,000 when income is $26,000, and consumPtion increases to $25,900 when income increases to $23,000, the marginal propensity to consume is: {sauna {a} sea. {C} I155. {D} 0.45. 6. Suppose consurnption is $10,000 when income is $9,000 and the marginal propensity to save equals 0.1. When income increases to $9,500, consurnption will be: {A}$B,500. {B} $111,451}. (C]$10,500. [D] $1.5t1. 7. If the consumption function is C=80 + 0.0T, the marginal propensity to save equals: (awe. {B}0.4. {C} I15. (D) 41.4. \f8. If C= 5111} + 11.511 and I= 4111), then equilibrium level of income is: {A}9DD. {B} 1,3111}. {C} 2,5111]. [D] 4.11111]. c= sous + osrv-r} T= 2111] G= 41111 I= 51111 9. Refer to Table 11.1. The equilibrium level of income is: {A}4,3. {B} 5.31111. ((3)4,61111. (D) 5.61111. 111. Refer to Table 11.1. If govemment spending increases by $11111, equilibrium output increases by: {A}$111. {E} $21111. {C} $41111. (D) $3111]. 11. [fthe marginal propensity to consume is 11.5, the tax multiplier is: {liq-2.5. {E} -2 {C} -1 [D] 4.64545 12. [fthe marginal propensity to save is 11.3. the tax multiplier is: {ml-2.5. {E} -1.'1. {C} -1.5. (D) -2.33. 13. Taxes are reduced by $511 billion and income increases by $1 ,111111 billion. The value of the tax multiplier is: {ml-4. {E}-211. (C}-111. (Bl-5