If induced spending increases from $300 to $315 when national income increases from $500 to $525, then the (mpc - mpm) is equal to ____. 0.9 0.7 0.6 0.8

In an economy where are there are only consumption expenditure and investment expenditure, what is the value of saving when Y=AE? Equal to investment Some negative value Zero Some positive value

If the mpc is equal to 0.75 and the mpm is equal to 0.15, what can we conclude? A rise in national income will cause a rise in aggregate expenditure Expenditures are high when our income is very low A change in national income does not change induced expenditures All of the answers are correct

The multiplier is a number that can be used to predict: The increase in wage rates caused by an increase in employment. The fall in equilibrium real GDP caused by a fall in autonomous expenditure. The increase in potential output caused by an increase in autonomous expenditure. The fall in induced expenditure caused by a rise in the GDP deflator.