Suppose Eddie's demand curve for text messages is T = 150 - 500Pt, where T stands for the number of text messages and Pt represents the price of text messages. What is Eddie's consumer surplus if Pt = $0.20 per message?

All the following actions represent fiscal policy EXCEPT

A) an increase in government spending. B) a reduction in individual income tax rates. C) a reduction in the money supply by the Federal Reserve. D) an increase in corporate income tax rates.

A change in government spending has a larger effect on income the

a. larger the elasticity of money demand. b. smaller the elasticity of money demand. c. steeper the LM curve. d. flatter the LM curve.