In the short run, a decrease in the price level:
a. decreases output prices relative to input prices.
b. increases the profit margins of many producers.
c. decreases RGDP supplied

If the real interest rate is below the equilibrium real interest rate

A) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will fall. B) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will rise. C) lenders will be unable to find borrowers willing to borrow all of the available funds and the real interest rate will rise. D) borrowers will be unable to borrow all of the funds they want to borrow and the real interest rate will fall.

If the MPS is 0.1 and the income tax rate is 0.33, and the fraction of income spent on imports is 0.25, then the multiplier is

A) 2.5. B) 1.47. C) 1.51. D) 1.55.