Because it has a direct effect on the hiring decisions of firms, a change in business confidence has a much larger impact on the level of economic activity than does a change in consumer confidence

The long-standing debate over rules versus discretion in macroeconomics centers on the following statement ________

A) "discretionary policy can lead to bad long-run outcomes but rules lack flexibility in the short-run" B) "the speed with which the self-correcting mechanism in the economy acts is in question" C) "the speed with which unemployment tends to disappear is debatable" D) all of the above E) none of the above

The marginal propensity to consume (MPC) is the change in consumption divided by the change in saving

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