If actions to reduce the expected cost of an accident are equally effective and managers authorize the least expensive actions first, the marginal cost of additional actions ________.

The traditional Keynesian approach to fiscal policy assumes that

A) an equal income distribution ensures a stable economy. B) consumers spend more when their incomes are higher. C) cutting taxes is a more effective way to stimulate the economy than is increasing government spending. D) the effect of unemployment compensation is to destabilize the economy.

Why does an increase in the price level tend to cause the consumption function to shift downward?

a. An increase in the price level decreases disposable income. b. An increase in the price level increases the demand for fixed money assets. c. An increase in the price level decreases the value of fixed money assets. d. An increase in the price level decreases saving and increases debt.