When the economy is experiencing a contraction, there is an increase in

If the consumption function is C = 25 + 0.9y and income increases by $100, then consumer spending will increase by

A) $10. B) $25. C) $90. D) $115.

Under perfect competition, the demand curve facing the firm is determined by

A) the intersection of the industry demand and supply curves. B) the tastes and preferences of consumers. C) utility maximizing behavior on the part of consumers. D) the willingness of the firm to supply the good.