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MMLU-Pro / 5554 / Assume that the marginal propensity to consume increased from 0.75 in year 1 to…

Problem

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question

Assume that the marginal propensity to consume increased from 0.75 in year 1 to 0.80 in year 2. Based on this information, which of the following is a correct conclusion?

category

other

options

  1. From year 1 to year 2, the spending multiplier decreased from 4 to 3.
  2. In year 2, a $100 billion increase in government spending would have increased real output by a maximum of $75 billion.
  3. From year 1 to year 2, the spending multiplier increased from 4 to 5.
  4. The marginal propensity to save increased from year 1 to year 2.
  5. A given change in government spending would have had a less powerful effect in year 1 than in year 2.
  6. In year 2, a $100 billion increase in government spending would have decreased real output by a maximum of $80 billion.
  7. The marginal propensity to consume decreased from 0.75 in year 1 to 0.70 in year 2.
  8. The marginal propensity to save decreased from year 1 to year 2.
  9. In year 1, a $100 billion increase in government spending would have increased real output by a maximum of $75 billion.

src

ori_mmlu-miscellaneous

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Source and history

Official source

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