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6 Written questions

6 Multiple choice questions

  1. Wealth
    Borrowing
    Expectations
    Real interest rates
  2. an increase in taxes or decrease in government spending or both, so that the net effect on aggregate demand is a decrease in net government spending
  3. What we spend on goods and services.
  4. real-balances effect
    interest rate effect
    foreign purchases effect
  5. leftward shift in the AS curve
  6. increases in government spending or decreases in taxes or both, so that the net effect on aggregate demand is an increase in net government spending

5 True/False questions

  1. Average Propensity to SaveSavings/Disposable income

          

  2. Shifts of the Investment Demand CurveOperating costs
    Business taxes
    Technological changes
    Stock of capital goods
    Planned inventory changes
    Expectations

          

  3. discretionary fiscal policyan increase in taxes or decrease in government spending or both, so that the net effect on aggregate demand is a decrease in net government spending

          

  4. Marginal Propensity to SaveChange in savings/Disposable income

          

  5. Relationship between changes in spending vs. the changes in real GDP.Spend less, GDP will go down
    Spend more, GDP will go up

          

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