If the MPC = 1, the spending multiplier is:

For infant industry tariff protection to be valid requires that

A) the tariff must be allowed to last forever. B) only industries that currently are producing efficiently should be protected. C) government officials must predict which industries will eventually be able to compete with more established foreign producers. D) the industries protected must have substantial monopoly power in the absence of foreign competition.

Recessions tend to be ________ by ________ the rate of inflation.

A. neither preceded nor followed; any change in B. preceded; a decrease in the stability of C. followed; an increase in D. followed; a decrease in