問題一覧
1
During the Great Depression, John Maynard Keynes quipped that “in the long run, we are all dead” in response to classical economists’ assertions that…
the economy would eventually recover without intervention.
2
Unintended inventory investment occurs when …
e. Both a. and b.
3
Which one of the following is a factor that firms take into account when deciding how much to invest?
All of the above
4
Suppose that Sue’s marginal propensity to consume is 0.7. If her income increases by $1,000, we would expect her consumption to increase by about…
$700.
5
According to the classical macroeconomic model discussed in the text, the key variable which adjusts to keep the economy in equilibrium when leakages are not equal to injections is …
the interest rate.
6
The multiplier in the Keynesian macroeconomic model is a function of which variable?
The marginal propensity to consume
7
A household’s marginal propensity to consume (mpc) is equal to…
All of the above
8
Suppose that intended investment dropped from 140 billion to 60 billion dollars, and the marginal propensity to consume is 0.8. If this is an example of a closed economy with no government sector, then output will be expected to drop by …
400 billion dollars.
9
According to the Keynesian macroeconomic model, consumption is a function of which three variables?
Autonomous consumption, the marginal propensity to consume, and income
10
What is the main difference between classical and Keynesian views about the principal determinant of consumption and saving levels?
Classical economists believe consumption and saving rates are mainly determined by the interest rate while Keynesians believe these vary according to income levels.
11
Which one of the following variables is classified as a leakage in the output-income-spending flow model presented in the text?
Household saving
12
In the Keynesian model, the larger the multiplier…
the larger the impact of changes in investment on output.
13
What is the equation for the Keynesian income/spending multiplier?
1 / (1 – mpc)
14
Classical economists argue that savings is always equal to intended investment because…
the interest rate adjusts to clear the market for loanable funds.
15
According to the Keynesian macroeconomic model, the level of intended investment depends upon …
the level of optimism or pessimism among investors.
16
Which of the following statements is true in the case of insufficient aggregate expenditure?
All of the above
17
Which one of the following statements is false?
Keynes thought that the interest rate was the most important factor in explaining the level of investment.
18
The marginal propensity to consume (mpc) is equal to the ratio of …
the change of consumption to the change in income.
19
Suppose the marginal propensity to consume in an economy is 0.9. What would be the Keynesian multiplier in this economy?
10
20
Suppose the demand for loanable funds increases. According to the classical macroeconomic model, what would happen to the quantity of funds loaned and the interest rate?
The quantity of funds loaned would increase and the interest rate would increase.
21
In a simple model without government or foreign trade, aggregate expenditure (AE) is equal to…
consumption plus intended investment.
22
In the traditional macro model with no government and a closed economy, aggregate expenditure is equal to …
consumption plus intended investment
23
It is a stylized fact that a strong economic expansion tends to lead to…
an increase in the inflation rate.
24
In the case of insufficient aggregate expenditure, household savings is greater than …
intended investment.
25
Suppose that Jane’s income increases from $30,000 per year to $35,000. At the same time, her consumption changes from $26,000 per year to $29,000 per year. What is Jane’s marginal propensity to save?
0.4