A decrease in autonomous investment of $100 million that occurs when the marginal propensity to save (MPS) equals 0.25 will lead to a decrease in real Gross Domestic Product (GDP) of

If two interdependent economies work independently pursuing the best interests of their own economies

A) both countries can end up worse than they planned because of international externalities. B) they will make other economies more vulnerable to international externalities. C) they will have to sacrifice their monetary autonomy to achieve their goals. D) both countries can end up worse than they planned because of the liquidity effect.

According to the above figure for a gasoline market, an increase in the price from $2 to $4 will result in

A) a shortage of 30 million gallons. B) an increase in quantity demanded of 10 million gallons. C) an increase in quantity supplied of 20 million gallons. D) an increase in demand of 20 million gallons.