The area between the market price and the demand curve provides a measure of:
a. consumer surplus

Automatic stabilizers decrease the impact of a recession on the level of economic activity because they

A) reduce the interest rate and so allow firms to increase their level of investment. B) mean disposable income does not change by as much as real GDP. C) increase taxes so the budget is always balanced. D) raise the exchange rate so U.S. exports become more attractive to foreigners. E) increase the quantity of money in circulation.

High interest rates might ________ purchasing a house or car but at the same time high interest rates might ________ saving

A) discourage; encourage B) discourage; discourage C) encourage; encourage D) encourage; discourage