In the short-run Keynesian model where the marginal propensity to consume is 0.75, to offset an expansionary gap resulting from a $1 billion increase in autonomous consumption, taxes must be:

If a consumer is compensated for the income effect that occurs when the price of a good increases, then his demand curves can never slope upward

What will be an ideal response?

If Rosa is willing to pay $450 for hockey tickets and has consumer surplus of $175, the price of the tickets is $625

a. True b. False Indicate whether the statement is true or false