If the marginal propensity to consume (MPC) is 0.96, the value of the spending multiplier is:

Fill in the blank: Producers will compare ________ benefits to ________ costs when considering how much output to produce

A) average; additional B) additional; additional C) additional; average D) average; average

Which of the following is most likely to help promote the efficient use of resources and rapid economic growth?

a. high tariffs and imposition of other trade restrictions b. high marginal tax rates c. an open and competitive capital market d. high rates of inflation