A decrease in the tax rate will ________ the disposable income of households and ________ the size of the multiplier effect

With respect to the market clearing price and the equilibrium quantity for good X, an increase in the demand for and a decrease in supply of the good definitely will

A) increase the market clearing price and the equilibrium quantity of good X. B) decrease the market clearing price and the equilibrium quantity of good X. C) increase the market clearing price of good X but lower the equilibrium quantity of X. D) increase the market clearing price of good X but have an uncertain impact on the equilibrium quantity of X.

The budget constraint illustrates all of the combinations of goods and services that the consumer can afford

a. True b. False Indicate whether the statement is true or false