Other things equal, the combination of a ________ saving rate and a ________ real interest rate will result in the largest accumulation of wealth over time.

As real disposable income increases, we expect the average propensity to consume (APC)

A) to always be below MPC. B) to increase. C) to remain unchanged. D) to decrease.

Which of the following is a major deficiency of fiscal policy as a stabilization tool?

a. Congress is reluctant to make changes in either taxes or expenditures. b. The Constitution requires the president to submit and Congress to pass a balanced budget. c. Both political and economic factors make it unlikely that changes in fiscal policy will be timed correctly. d. A change in fiscal policy exerts major effects on the economy quickly.