Question 1 (1 point) of Saved Consider the following news headline: "Canadian business leaders fear reduced world demand for commodities". Which of the following correctly describes the likely effect in our simple macro model? Al The AL function shifts downward. OH] The At function shifts upward. C) The consumption function shifts upward. (D) The savings function shifts downward. OF) The investment function shifts upward. Question 2 (1 point) / Saved In a simple macro model with the price level anumed to be comiant, a change in firms' level of desired investment is predict income by Al shifting the saving function (HI shifting the comsumption function. 4 shifting the 45-degree line. OW) causing movement along the investment function. (@ El shifting the aggregate expenditure function. Question 3 (1 point) In a simple m ucroeconomic model, with no government or foreign trade, if desired chual national income, then: a inventories and national income are in equilibrium. Ob invent in begin to fall, leading to a fall in national income. Of im rics begin to rise, leading to a rise in national income. O d inventories begin to fall, leading to a rise in national income. Of inventories begin to rise, leading to a fall in national income. Question 4 (1 point) Consider the following comumption function C . 280 1 0.79Yp When Yp = 4400, what is the average properaity to consume? (Answer to two decimal points.| Your Answer: Answer Question 5 (1 point) Consider the following comumption function C = 100 . 0./Yp When Yp - 3200, what is the marginal propensity to save! (Arawer to two decimal points.] Your Answer: Answer Question 6 (1 point) Consider the aggregate expenditure function for a closed economy with no government. The aggregate expenditure function will shift up twith no change in O al there in an increase in the marginal properaity to save. Ob) there is an increase in the marginal propernity to consume. O ] there in a decrease in autonomous consumption O d there is an increase in autonomous consumption. O r there is an increase in desired savings. Question 7 (1 point) The aggregate capanditure [At) function is an upward.sloping curve that deurim a what an economy would like to spend, in the absence of income constraints, at each level of output. Omg what firma and households would like to spend at each level of national () what is actually spent on an economy's output at each level of output. D) the amount spent on an economy's output at each rational income OF) what is actually spent at each level of national income. Question 8 (1 point) When would we expect to see undesired or unplanned inventory decumulative? A when actual aggregate expenditure careoch desired aggregate expenditure OH when consumption exceeds investment 4) when desired aggregate expenditure exceeds actual aggregate expenditure OD) when investment exceeds consumption E when autonomous Exp and ture exceeds induced expenditureQuestion 9 1 point) The following information describes a closed economy with no government. Angiegate output is demand-determined. Equilibrium national income: Y = C . I Autonomous consumptionc 420 Margirl propensity to consume: 0.70 Autonomous Inmiment: 300 What is the equilibrium level of rational income!' [Answer to the nearest dollar.) Your Answer: Answer Question 10 |1 point) Counder the following information describing an economy with demand -determined output. There is no government or forrun trade. All dollar figures are in hibags 1. equilibrium condition is Ym Cor 2. marginal propernity to ure = 0.20 3. the autonomous part of Cis $50 4. investment in autonomous and equal $24 TABLE 21-5 Refer to lable 21-9. The equilibrium level of rational income is O HI $375. Question 11 (1 point) The marginal propensity to save refers to the A additional saving that occurs out of an additional dollar of income. OHI additional saving that occurs over time. 4) total saving divided by a change in income. O ") change in saving divided by total income. O E) additional swing that occurs out of an additional dollar of investment. Question 12 |1 point) Consider the consumption function in a simple macro model with no Bases. At the level of rational income where APL = 1, the nation's houscholth are A allocating their income equally between saving and comumption. OHI waving a portion of their income, but saving is less than consumption. 0 4 saving all of their disposable income. OW) spending more than their current income. O E) consuming all of their disposable income