Refer to Figure 18-1. The appreciation of the dollar is represented as a movement from

Refer to Figure 2-6. If the economy is currently producing at point E, what is the opportunity cost of moving to point B?

A) 30 thousand wrenches B) 10 thousand hammers C) 13 thousand hammers D) 0 wrenches

The higher the marginal propensity to consume, the

A) smaller will be the simple multiplier. B) more insulated will be consumption spending from exogenous shocks to the economy. C) less effective will be any given monetary or fiscal policy. D) more unstable the economy will be.