AP Macroeconomics Practice Test: Consumption, Saving, Investment, and the Multiplier

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Question 6 questions

Time 7 minutes

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1. When disposable income increases by $X ,

2. Which of the following is true about the consumption function?

3. Which of the following events most likely increases real GDP?

4. Which of the following choices is most likely to create the greatest decrease in real GDP?

5. The tax multiplier increases in magnitude when

6. Which of the following is the source of the supply of loanable funds?