If the MPS in an economy is .4, government could shift the aggregate demand curve leftward by $50 billion by

Once the Phillips curve has shifted up, the economy is ________ because ________

A) better off; every unemployment rate becomes associated with a higher inflation rate B) better off; every inflation rate becomes associated with a lower unemployment rate C) worse off; every inflation rate becomes associated with a higher unemployment rate D) worse off; every unemployment rate becomes associated with a lower inflation rate

Holding all other things constant, when the price level rises, interest rates:

a. rise and firms want to borrow more for new plants and equipment and households want to borrow less for homebuilding. b. rise and firms will want to borrow less for new plants and equipment and households will want to borrow less for homebuilding. c. fall and firms want to borrow more for new plants and equipment and households want to borrow more for homebuilding. d. all of the above