Assume the marginal propensity to consume (MPC) is 0.80 and the government cuts taxes by $100 billion. The aggregate demand curve will shift to the:

During the late nineteenth century, the gold standard was a subject of controversy. Why?

A) Businesses resented fixed exchange rates because of their inability to raise or lower prices. B) Gold flows were erratic and resulted in a series of large economic swings—booms and busts. C) Prices were stable and predictable, but profits fell. D) Governments cheated on printing money, causing inflation problems all over the world.

As a student, one of the costs of sleeping in rather than going to class is likely to be a lower grade in the class

a. True b. False Indicate whether the statement is true or false