The fact that individuals whose credit worthiness is less than it appears to be are those who are most willing to borrow funds at any given interest rate is an example of

If an increase in autonomous consumption spending of $25 million results in a $100 million increase in equilibrium real GDP, then

A) the MPC is 0.25. B) the MPC is 0.75. C) the MPC is 0.8. D) the MPC is 2.5.

The law of demand assumes that as the price of a good increases,

a. people recognize that its price may be even higher in the future, so they buy now rather than later b. consumers tend to shift their purchases to relatively cheaper substitutes c. people will buy less of it in the hope that the good will be cheaper in the future d. the consumer's money income increases, and he or she is less able to buy all goods, including the good whose price has increased e. the consumer's money income decreases, and if the product is a normal good, more will be purchased