The substitution effect of a decrease in the price of an inferior good encourages the consumer to purchase more of the good while the income effect encourages the consumer to purchase less of it

As you move from left to right, the aggregate demand curve _____.

(A) May slope upward or downward (B) Slopes upward (C) Slopes downward (D) Is horizontal

If the consumption function is defined as C = 7,250 + 0.8Y, what is the multiplier?

A) 0.2 B) 0.8 C) 1.25 D) 5