If the MPC in an economy is .9, a $1 billion increase in government spending will ultimately increase consumption by:

Refer to the figure above. What is the profit-maximizing quantity that the monopolist should produce if it faces a constant marginal cost of $3?

A) 200 units B) 300 units C) 400 units D) 600 units

In using taxes as a tool for the redistribution of income and wealth in the U.S. economy, the government

a. taxes households with higher incomes at higher rates. b. uses tax revenues to provide services used to a greater extent by households with lower incomes. c. uses tax revenues to make transfer payments to households with lower incomes. d. Does all of these.