If the MPC = 0.75, the government spending multiplier would be

Which of the following statements is NOT true for a perfectly competitive firm?

A) A firm's demand curve is horizontal. B) The firm can influence its demand curve by advertising its product. C) The firm's demand curve is perfectly elastic. D) The market demand and supply curves determine the market price.

A $500 increase in investment will shift the aggregate expenditures curve up by:

a. exactly $500 and will increase the equilibrium level of real GDP by exactly $500. b. exactly $500 and will increase the equilibrium level of real GDP by less than $500. c. exactly $500 and will increase the equilibrium level of real GDP by more than $500. d. more than $500 and will increase the equilibrium level of real GDP by more than $500. e. less than $500 and will increase the equilibrium level of real GDP by less than $500.