An increase in the marginal propensity to consume (MPC) will cause the consumption function to become steeper.

The less interest-sensitive is money demand, the

A) more effective is fiscal policy relative to monetary policy. B) more effective is monetary policy relative to fiscal policy. C) steeper is the IS curve. D) flatter is the LM curve.

A competitive car wash currently hires 4 workers, who together can wash 80 cars per day. The market price of car washes is $5 per wash, and the price of workers is $60 per day. The car wash should hire a fifth worker if it would increase total production to at least:

a. 92 cars per day. b. 100 cars per day. c. 104 cars per day. d. 110 cars per day.