Signaling takes place in markets with ________

Suppose scientists discover that eating soybeans prevents cancer and heart disease. Other things constant,

A) demand for soybeans will increase and soybean prices will fall. B) the price of soybeans will increase and demand will fall. C) demand and prices of soybeans will increase. D) the quantity demanded of soybeans will change, but demand will remain the same.

If the consumption function is C = 120 +_.8(Y-T) in the basic Keynesian model, then in the government spending multiplier is:

a. 5. b. 4. c. 1.25. d. .8