Calculate the annual return earned by a lender on a sum of $800 lent out at 8 percent interest, if prices inflate at the rate of 5 percent per annum

If producer pays entire tax, good is _________________.

Fill in the blank(s) with the appropriate word(s).

In an economy with no income taxes or imports, if the multiplier is 5, what does the MPC equal?

A) 0.9 B) 0.2 C) 0.4 D) 0.8 E) 0.5