If the federal government has a deficit, and the current account is in balance, then

According to the above table, the value of MPS is

A) 0.9. B) 0.1. C) 0.2. D) increasing as real disposable income rises.

As shown in Figure 7-4, for income to be unchanged when there is an autonomous decline in investment, the interest rate would have to

a. rise to r0. b. fall to r2. c. remain constant at r1. d. None of the above