Changes in ________ that are intended to achieve macroeconomic policy objectives refer to fiscal policy

Suppose the MPC is 0.9 . If autonomous consumption spending increases by $20 billion, equilibrium output will

a. increase by $22.2 billion b. increase by $200 billion c. not change because the MPC only changes consumption when income changes d. not change because the expenditures multiplier only applies to changes in investment spending and government purchases e. increase by $18 billion

The impact of saving on the economy is

a. always beneficial b. always harmful c. beneficial in the short run, but not in the long run d. beneficial in the long run, but not necessarily in the short run e. neutral in both the short run and the long run