In the above table, the relationship between x and y is ________ and, with y measured on the vertical axis, the slope between y = 5 and y = 8 is equal to ________

Which of the following is not an argument in favor of reforming the tax laws to encourage saving?

a. Saving is a key determinant of long-run prosperity. b. Current tax laws discourage saving for the purpose of leaving a large bequest. c. The substitution effect of a higher return to saving may be about equal to the income effect of a higher return to saving. d. The tax code currently taxes some forms of capital income twice.

If the reserve ratio is 4 percent, then the money multiplier is

A. 25 B. 20 C. 4 D. None of the above is correct.