Refer to Figure 9-3. If there was no quota, how many pounds of peanuts would domestic producers supply?

Ignoring any supply-side effects, to close a recessionary gap of $100 billion with a government expenditure multiplier of 5, the government could

A) increase government expenditure on goods and services by $100 billion. B) raise taxes by $100 billion. C) increase government expenditure on goods and services by $20 billion. D) raise taxes by more than $20 billion. E) decrease government expenditure on goods and services by $20 billion.

A reduced demand for lawyers' services to prosecute damage suits

A) lowers the cost of hiring a lawyer to draw up a will. B) raises the cost of hiring a lawyer to draw up a will. C) raises the demand for lawyers' services in drawing up wills. D) will not affect the cost of hiring a lawyer to draw up a will though it could affect lawyers' fees.