If the marginal propensity to save in a country is 0.4, then the value of the tax multiplier is:
a. ?1

As the relative price of a good falls, the substitution effect implies that people buy

A) less of that good and more of its substitutes. B) more of that good and less of its substitutes. C) less of that good and less of its substitutes. D) more of that good and more of its substitutes.

A surplus will cause pressure on the price to fall.

a. true b. false