As the marginal propensity to consume (MPC) increases, the spending multiplier:

Suppose the demand for calendars increases in November. At the same time, the price of the ink used in the production of calendars increases. In the market for calendars, the equilibrium price rises, but the effect on the equilibrium quantity is ambiguous

a. True b. False Indicate whether the statement is true or false

Changes in relative prices usually lead to increases in real income because prices have changed.

Answer the following statement true (T) or false (F)