08 Jun Question 10. Refer to the above diagram that ap
Question
10. Refer to the above diagram that applies to a private closed economy. The slope of the
consumption schedule in this figure reveals that the:
A. MPS rises as income rises.
B. MPC is constant.
C. APC is constant.
D. APC increases as income increases.
11. Refer to the above diagram that applies to a private closed economy. If gross investment is
Ig1, the equilibrium GDP and the level of consumption will be:
A. H and HB respectively.
B. J and JI respectively.
C. J and JK respectively.
D. H and HF respectively.
12. Refer to the above diagram that applies to a private closed economy. In this economy the
value of the multiplier is equal to:
A. HJ/BF
B. FD/BF
C. FD/LK
D. All of the above E. None of the above
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