In large companies it is often the case that

The higher the marginal income tax rate, the

a. higher the MPC out of disposable income. b. lower the MPC out of disposable income. c. higher the autonomous expenditure multiplier. d. lower the autonomous expenditure multiplier. e. None of the above

If the price of the good described in Exhibit 4-1 is $1.60, then an economist would expect the

a. price to decrease to $1.40 b. price to decrease to $1.50 c. quantity supplied to increase to 50 units d. quantity demanded to increase to 80 units e. quantity demanded to increase to 90 units