On May 12, 2011, it cost U.S. $1.44 to buy 1 euro. How many euros would U.S. $1 buy?

If autonomous investment increases by $200 billion and the marginal propensity to consume (MPC) is 0.5, then

A) real Gross Domestic Product (GDP) will rise by $100 billion. B) real Gross Domestic Product (GDP) will rise by $200 billion. C) real Gross Domestic Product (GDP) will rise by $400 billion. D) real Gross Domestic Product (GDP) will decrease by $100 billion.

When a government subsidy is granted to the sellers of a product, buyers can end up capturing some of the benefit because

a. the market price of the product will fall in response to the subsidy. b. the market price of the product will rise in response to the subsidy. c. the market price of the product will not change in response to the subsidy. d. producers will reduce the supply of the product.