A relative price is the product of two money prices

Deb's income has just risen from $950 per week to $1,050 per week. As a result, she decides to increase the number of movies she attends each month by 5 percent. Her demand for movies is

A) represented by a vertical line. B) represented by a horizontal line. C) income elastic. D) income inelastic.

What is the government purchases multiplier if the tax rate is 0.1 and the marginal propensity to consume is 0.9? Assume the economy is closed

A) 5.3 B) 10 C) 11.1 D) 100