Macroeconomics 16th Edition by Campbell R. McConnell Test bank

      
       A) consumers spend 80 percent of their after-tax incomes.      
       B) consumers spend 90 percent of their after-tax incomes.
       C) a tax reduction will reduce consumption.
       D) the relationship between consumption and after-tax income is random.
      

 

After-tax income	Consumption
$1000	$900
2000	1800
3000	2700
4000	3600
5000	4500

 The above data suggest that:

      
       A) a policy of tax reduction will increase consumption.  
       B) a policy of tax increases will increase consumption.
       C) tax changes will have no impact on consumption.
       D) after-tax income should be lowered to increase consumption.
      

 

210)       Refer to the below diagram. The variables X and Y are:



 

      
       A) inversely related. 
       B) directly related.
       C) unrelated.
       D) negatively related.
      

 

211)       Refer to the below diagram. The vertical intercept:

      
       A) is 40.
       B) is 50.
       C) is 60.
       D) cannot be determined from the information given.
      

 

212)       Refer to the below diagram. The slope of the line:

      
       A) is -¹/₄.     
       B) is +¹/₄.
       C) is.40.
       D) cannot be determined from the information given.
      

 

213)       Refer to the below diagram. The equation which shows the relationship between Y and X is:

      
       A) Y = 50 +¹/₄X.
       B) X =¹/₄Y.
       C) Y =.4X.
       D) Y =