Assume the marginal propensity to consume (MPC) is 0.75 and the government increases taxes by $250 billion. The aggregate demand curve will shift to the:

Household heads who typically work full-time year round have a 1 in 30 chance of being poor

Indicate whether the statement is true or false

In purchasing diamonds and water, a consumer would maximize utility by

a. dividing expenditure equally between those two goods b. equating the marginal utilities from each of those two goods c. equating average utility per diamond with average utility per unit of water d. equating the total utility per diamond with the total utility per unit of water e. equating marginal utility per dollar spent on each of those two goods