If the marginal propensity to consume is 0.8, and aggregate expenditure initially increases by $100 million, then the aggregate demand curve will shift outwards by $500 million, holding the price level constant

The figure above shows Sally's budget line and one of her indifference curves. At point a, Sally's marginal rate of substitution is ________

A) 1/4 B) 4 C) 10 D) 40

Buying a diversified mutual stock fund allows you to

A) completely avoid all types of risk. B) avoid only random, unsystematic risk. C) avoid only systematic risk. D) avoid risk only when all the stock prices are perfectly correlated.