Related to the Economics in Practice on page 281: The foreign visitors to the temples of Laos are typically much richer than the local Laotians. This tends to make the foreign visitors ________ buyers when it comes to ticket prices to enter the temples.

If the MPC is 0.6, and the government increases its spending by $300b, the overall effect on GDP will be:

A. a decrease of $750b. B. a decrease of $550b. C. an increase of $750b. D. an increase of $250b.

Is it a necessary condition that velocity is constant and that real output growth is assumed to be zero to have Milton Friedman's assertion that inflation is a monetary phenomenon be true?

What will be an ideal response?