If the substitution effect is stronger than the income effect, an increase in real interest rates will lead to ________ in aggregate consumption and will lead to ________ in household saving

The presence of negative externalities leads to a misallocation of societal resources because: a. whenever external costs are imposed on outside parties, the good should not be produced at all

b. less of the good than is ideal for society is produced. c. there are some costs associated with production that the producer fails to take into consideration. d. the government always intervenes in markets when negative externalities are present, and the government is inherently inefficient.

The multiplier is equal to:

A. 1 - MPC. B. MPS ? MPC. C. 1 ? MPS. D. 1 ? MPC.