An American farmer today feeds over ______ people.

If that the marginal propensity to save (MPS) increased from 0.20 to 0.25, this would cause the multiplier effect to

A) increase. B) decrease. C) stay the same. D) None of the above is correct.

The classical approach to macroeconomics assumes that

A) wages, but not prices, adjust quickly to balance quantities supplied and demanded in markets. B) wages and prices adjust quickly to balance quantities supplied and demanded in markets. C) prices, but not wages, adjust quickly to balance quantities supplied and demanded in markets. D) neither wages nor prices adjust quickly to balance quantities supplied and demanded in markets.