Devry Econ 312 Week 5 Weekly Assignment - Latest Essay

887 Words Apr 6th, 2016 4 Pages
Devry ECON 312 Week 5 Weekly Assignment - Latest
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Devry ECON 312 Week 5 Weekly Assignment - Latest

1. (TCO 6) Discretionary fiscal policy refers to (Points : 1) any change in government spending or taxes that destabilizes the economy. the authority that the President has to change personal income tax rates. intentional changes in taxes and government expenditures made by Congress to stabilize the economy. the changes in taxes and transfers that occur as GDP changes.
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Question 6.6. (TCO 6) The consumption schedule directly relates (Points : 1) consumption to the level of disposable income. saving to the level of disposable income. disposable income to domestic income. consumption to saving.

Question 7.7. (TCO 6) The size of the MPC is assumed to be (Points : 1) less than zero. greater than one. greater than zero, but less than one. two or more.

Question 8.8. (TCO 5) Refer to the graph. Which of the following factors will shift AD1 to AD2?
Graph Description
(Points : 1) A decrease in the general price level An increase in real interest rates An increase in national incomes abroad A decrease in the value of financial assets

Question 9.9. (TCO 6) The practical significance of the multiplier is that it (Points : 1) equates the real interest rate and the expected rate of return on investment. magnifies initial changes in spending into larger changes in GDP. keeps inflation within tolerable limits. helps to stabilize the economy.

Question 10.10. (TCO 5) The Federal budget deficit is found by (Points : 1) subtracting government tax revenues plus government borrowing from government spending in a particular year. subtracting government tax revenues from government spending in a particular year. cumulating the

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