Refer to Table 12-4. Given the data in the table above, the marginal propensity to save is A) 0.3. B 0.4. C) 0.5. D) 0.6.

Contrast Say’s Law from Keynes’ Law.  Give a rationale given by supporters of each perspective.  Are these perspectives compatible? (11.1)

The value of average propensity to save can be less than 0 True / False

97) You observe that unplanned inventories are increasing. You predict that there will be ________. A) a business cycle B) an expansion C) a trough D) a recession 98) Business cycle turning points are A) unaffected by, and unrelated to the multiplier. B) easy to predict. C) brought about by changes in autonomous expenditures that are then subject to the multiplier effect. D) None of the above is correct. 99) Which of the following does NOT occur as the economy moves from an expansion to a recession? A) An initial decrease in autonomous spending is the trigger that creates the business cycle turning point. B) The change in planned spending exceeds the change in real GDP. C) The multiplier process reinforces any decrease in spending and pushes the economy into recession. D) Incomes fall during recessions as firms cut production in response to unplanned increases in inventories. 100) Which of the following is INCORRECT? A) Expansions usually begin…