If the government decides to spend an extra $5 billion on fighter jets that they would otherwise have spent on road construction, and the MPC = 0.75, what is the effect on AD?
a. It has no effect

Increasing savings and ________ go hand in hand because they both ________

A) decreasing expenditures; are the result of an increase in nominal interest rates on the loanable funds market B) decreasing expenditures; are the result of an increase in real interest rates on the loanable funds market C) increasing expenditures; are the result of an increase in nominal interest rates on the loanable funds market D) increasing expenditures; are the result of an increase in real interest rates on the loanable funds market E) None of the above answers is correct.

The optimal level of military expenditures is the level at which _____

a. a country is completely protected from foreign invasion b. a country spends more on national defense than all other countries along it to win an arms race c. a country spends more on national than its rivals d. the marginal benefit of additional expenditures equals marginal cost