In Figure 11.3, if the MPS is 0.25 and the distance between points C0 and C1 is 200, then the distance between points y0 and y1 must be

According to new growth theory, as technology becomes more important to growth, so does

A) increasing taxes. B) human capital. C) military spending. D) increasing trade barriers.

Government spending conducted for the purpose of achieving full employment, price stability, or economic growth is an example of

A) fiscal policy. B) monetary policy. C) interest-rate policy. D) exchange-rate policy.