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Question 5 1 pts According to figure 5 Saving is greater than zero at an income level of $30 o Consumption is $20 when income

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Question 5 1 pts According to figure 5 Saving is greater than zero at an income level of $30 o Consumption is $20 when income is zero The APC is greater than 1 at income levels above $30 All of these options are true Question 6 1 pts Injections include: O Business saving Taxes Imports Bank lending Question 7 If the marginal propensity to consume is 0.8, what is the value of the fiscal multiplier? O 10 05 O 80 O 0.80 D Question 8 1 pts Suppose that investment demand increases by $300 billion in a closed and private economy (no government or foreign trade). Assume further that households have a marginal propensity to consume of 80 percent. Ultimately, how much will aggregate demand increase? Enter your answer in billions. For example if your answer is $600 billion then enter 600. If your answer is $1,500 then enter 1500 Figure 5 140 120 100 Consumption (billions of dollars per year) BO 60 . 40 20 10 20 30 40 50 60 70 Disposable Income (ballons of dollars per year)

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