Suppose the equilibrium level of national income is $800 billion and the MPC is 0.8 . Suppose as well that people decide to increase their saving by $30 billion. Before this change, people intended to save $100 billion and producers intended to invest $100 billion. The new equilibrium level of national income is

Which of the following items is likely to have the highest income elasticity of demand?

A) water B) a hamburger C) a luxury cruise to several European countries D) breakfast cereal

As a proportion of domestic output, taxes in the United States:

A. are lower than in most other industrially advanced countries. B. are higher than in most other industrially advanced countries. C. are approximately the same as in most other industrially advanced countries. D. doubled in the 1990s.