Answer to Question #169209 in Macroeconomics for Rizamaxx

Question

Multiple Choice

Given:  C = 100 + 0.75Yd;  I = 120 - 0.1Y – 200i; G= 40; T = 40 

What is the marginal propensity to consume? 

Answer:

50

-0.2

100

-200

What is the autonomous spending multiplier? 

Answer:

4

40

100

50

What is the value of Y in the goods market equilibrium if interest rate is equal to 5%?

Answer:

350

489

629

556

Given your value of Y in 33, what is the value of disposable income?

Answer:

449

678

437

589

What is the value of consumption? 

Answer:

542

393

437

616

What is the value of investment?

Answer:

47

39

72

88

How much will Y change when government spending increase by 20?

Answer:

90

120

100

80

How much will Y change when taxes increase by 20?

Answer:

-80

-70

-60

-50

How much will Y change when government spending and taxes increase by 20?

Answer:

20

40

10

50

Given: Money Supply = 900; Mt = 0.7Y; Ms = 250 – 800i, and P = 1

If Y is equal to 1000, what is the value of the interest rate?

Answer:

15%

20%

16%

6.25%

Given the interest rate in 40, how much money will be used for speculative purposes?

Answer:

210

233

200

616

What will be the amount of money that will be used for transactions?

Answer:

789

393

700

667

If Money supply decreases to 800, what will be the new interest rate?

Answer:

18.75%

34.6%

19.66%

44.5%

What will be the new amount for speculative purposes?

Answer:

150

100

250

300

What will be the new amount of money that will be used for transactions?

Answer:

789

393

700

667

Given:   IS ~ Y = 657 – 571i

LM ~ Y = 357 + 1143i

What is the equilibrium value of the interest rate in the economy?

Answer:

17.5%

32%

16%

57%

What is the equilibrium value of income in the economy?

Answer:

557

887

667

678

If Fiscal Policy was done to expand aggregate expenditure and made the government spending increase, what will happen to the IS curve?

Answer:

Shift to the left

Shift to the right

If Fiscal Policy was done to contract and made the level of taxation to increase, what will happen to the IS curve?

Answer:

Shift to the left

Shift to the right

If Monetary Policy was done to expand the economy and made the money supply to increase, what will happen to the LM curve?

Answer:

Shift downward

Shift upward

Answer 1

Equation 1

1.) marginal propensity to save -2

2.) Autonomous spending 4

3.) Y=489

4.) Disposable income =449

5.) Consumption=393

6.) Investment=88

7.) Y=80

8.) Y=-80

9.)Y=40

Equation 2

1.) 16%

2.) 210

3.) 700

4.) 18.75%

5.) 300

6.) 667

Equation 3

1.) 17.5%

2.) 678

3.) Shift right

4.) Shift left

5.) Shift downward