Podcast
Questions and Answers
What happens to private savings if disposable income decreases by $200 billion in the economy described?
What happens to private savings if disposable income decreases by $200 billion in the economy described?
- Private savings increases by $200 billion.
- Private savings decreases by $200 billion.
- Private savings increases by $120 billion.
- Private savings decreases by $120 billion. (correct)
If national savings increases by $80 billion in the economy described, what is the change in investment?
If national savings increases by $80 billion in the economy described, what is the change in investment?
- Investment increases by $80 billion.
- Investment increases by $40 billion. (correct)
- Investment decreases by $80 billion.
- Investment decreases by $40 billion.
How does an increase in government spending affect national savings in the economy described?
How does an increase in government spending affect national savings in the economy described?
- National savings increases.
- National savings doubles.
- National savings remains unchanged.
- National savings decreases. (correct)
If the equilibrium interest rate in the economy described is 8%, what is the level of investment?
If the equilibrium interest rate in the economy described is 8%, what is the level of investment?
What is the impact on private saving if consumption increases by $50 billion?
What is the impact on private saving if consumption increases by $50 billion?
If government spending is raised by $500 in the economy described, what happens to the equilibrium interest rate?
If government spending is raised by $500 in the economy described, what happens to the equilibrium interest rate?
What happens to consumption when the government raises taxes by $100 billion?
What happens to consumption when the government raises taxes by $100 billion?
How does private savings change when the government increases taxes by $100 billion?
How does private savings change when the government increases taxes by $100 billion?
What happens to public savings when the government raises taxes by $100 billion?
What happens to public savings when the government raises taxes by $100 billion?
How does investment change when the government increases taxes by $100 billion?
How does investment change when the government increases taxes by $100 billion?
If the marginal propensity to consume is 0.6, what does this suggest about the impact of tax increases on private savings?
If the marginal propensity to consume is 0.6, what does this suggest about the impact of tax increases on private savings?
Why does total savings increase when the government raises taxes by $100 billion?
Why does total savings increase when the government raises taxes by $100 billion?
Flashcards are hidden until you start studying
