If the consumption function is C = 90 + 0.75y, then the marginal propensity to consume is

The Phillips curve:

a. was relatively well-defined during the 1960s. b. demonstrates how to achieve stable economic growth. c. shows the trade-off between deficits and inflation. d. helps to stimulate entrepreneurial profits. e. becomes vertical at full employment.

When negative spending shocks occur, transfer payments automatically fall

a. True b. False