Leo is a welfare recipient who qualifies for two means-tested cash benefit programs. If he does not earn any income, he receives $225 from each program. For each dollar he earns (which his employer is required to report to the welfare agency), his benefit from each program is reduced by 75 cents until the benefit equals zero. When Leo's earnings are less than $300, each extra dollar he earns causes his total income (earnings plus benefits) to:

José is putting money for college in a savings account. The bank then makes this money available to business borrowers. In essence:

a) José is supplying loanable funds for business investment. b) José is demanding loanable funds. c) The interest rates that businesses pay are independent of the actions of suppliers of funds, such as José. d) Financial markets are not performing the role of an intermediary.

If consumption increases,

A) the SRAS curve will shift rightward, which will push the price level up. B) the SRAS curve will shift leftward, which will push the price level up. C) the AD curve will shift leftward, which will push the price level down. D) the AD curve will shift rightward, which will push the price level up.