Gross fiscal expenditure in a country increased by $100,000 during a certain year. If the marginal propensity to consume is 0.8, then real GDP in this country has increased by:

In the foreign exchange market, the demand for dollars increases and the demand curve shifts if the

A) U.S. exchange rate falls. B) expected future exchange rate falls. C) U.S. interest rate differential decreases. D) U.S. exchange rate rises. E) U.S. interest rate differential increases.

The popularity of digital cameras has enticed large discount stores like Wal-Mart and Costco to offer digital photo printing services. How does this affect the digital photo printing market?

A) The demand curve for digital photo printing services shifts to the left. B) The supply curve for digital photo printing services shifts to the right. C) The supply curve for digital photo printing services shifts to the left. D) The demand curve for digital photo printing services shifts to the right.