The marginal propensity to consume (MPC) is the change in consumption divided by the change in saving

For U.S. consumers, the income elasticity of demand for fruit juice is 1.1. If the economy enters a recession next year and consumer income declines by 2.5%, what is the expected change in the quantity of fruit juice demanded next year?

+2.75% -27.5% +27.5% -2.75%

All but the most primitive societies use money as a medium of exchange, implying that

A) the use of money is economically efficient. B) barter exchange is economically efficient. C) barter exchange cannot work outside the family. D) inflation is not a concern.