Aggregate consumption will certainly increase if

MPC in an economy is 0.8. If investment is increased by $5 million, how much would be increas in income.

At the point where the consumption schedule intersects the 45-degree line: saving equals income. the MPC equals 1. saving is zero. the APC is zero.

A recessionary gap: Would cause a depletion of inventories. Would occur if total output were less that aggregate demand. Is the amount by which aggregate expenditure falls short of full employment GDP. Is the amount by which total spending exceeds GDP.

Which of the following correctly describes how a decrease in the price level affects consumption spending? Select one: a. A decrease in the price level raises real wealth, which causes consumption to increase. b. A decrease in the price level decreases the amount of money a household needs to buy goods and so raises the interest rate, which causes consumption to increase. c. A decrease in the price level increases the amount of money a household needs to buy goods and so raises the interest rate, which causes consumption to increase. d. A decrease in the price level lowers real wealth, which causes consumption to decrease.

If disposable income is $800 billion when the average propensity to consume is 0.8, it can be concluded that saving is $800 billion. $160 billion. $640 billion. $64 billion.

If disposable income is $900 billion when the average propensity to consume is 0.6, it can be concluded that saving is $360 billion.   $540 billion.   $900 billion.   $400 billion.

Consider an economy in which the only taxes collected by the government are lump-sum (the tax bills of individuals are independent of their actions). If the government increases its tax revenue, then, given GDP remains unchanged, the disposable incomes of households will: Decrease. Increase. Remain unchanged. None of the above.

If the increase in government spending is $500 and the marginal propensity to consume is .75 then the change in real gross domestic domestic product will be ___

The marginal propensity to consume is:      the amount of consumption at a specific level of income.            the fraction of a change in income that is consumed or spent.            a change in saving divided by a change in consumption.            consumption times income.