A central bank can reduce inflation by reducing money supply growth, but it necessarily does so at the cost of permanently raising the unemployment rate

Some observers opposing free trade argue that when we buy shoes from Brazil, U.S. workers lose their jobs. The fact of the matter is that

A) no U.S. worker has actually lost a job because of free trade. B) most jobs lost because of free trade pay less than the poverty level. C) free trade creates jobs in export industries. D) the jobs lost are really in Brazil.

If the MPC is 0.8 and disposable income shrinks by $100 million. Consumption would

a. rise by $8 million b. rise by $80 million c. fall by $80 million d. fall by $8 million e. fall by $20 million