If the marginal propensity to consume is 0.9, the government purchases by $100, and net exports decline by $60, the equilibrium level of real gross domestic product will

As real disposable income increases, consumption expenditures

A) increase by the same amount. B) increase by a smaller amount. C) increase by a larger amount. D) remain constant.

In the classical model, the quantity of loanable funds supplied is

a. positively related to the level of income b. negatively related to the price level c. positively related to the price level d. negatively related to the interest rate e. positively related to the interest rate