In the long run, a year-long drought that destroys most of the summer's wheat crops causes permanently:

Whether one views the discretionary policies of the 1960s and 1970s as destabilizing or believes the economy would have been less stable without these policies, most economists agree that

A) stabilization policies proved more difficult in practice than many economists had expected. B) stabilization policies proved not to be inflationary. C) the nondiscretionary policymakers were right in believing that the private economy is inherently stable. D) the discretionary policymakers were right in believing that the private economy is inherently stable.

If the marginal propensity to save (MPS) is 0.1, the multiplier will be

A) 0.1. B) 1. C) 5. D) 10.