Indifference curves that lie below the budget line provide higher levels of utility, but they represent combinations that are not affordable

Assume that the M1 multiplier is 4. If the Federal Reserve purchases $200 worth of government securities, the money supply will

A) rise by $200. B) rise by $800. C) fall by $200. D) fall by $800.

Suppose two countries are identical in every way with the following exception. Economy A has a higher rate of depreciation (?) than economy B. Given this information, we know with certainty that

A) steady state consumption in A is higher than in B. B) steady state consumption in A is lower than in B. C) steady state consumption in A and in B are equal. D) steady state growth of output per worker is higher in A than in B. E) none of the above