Max has allocated $100 toward meats for his barbecue. His budget line and an indifference map are shown in the above figure. What is the price of chicken?

During a contraction,

A) higher income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus. B) higher income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit. C) lower income tax revenues tend to automatically increase a budget deficit or reduce a budget surplus. D) lower income tax revenues tend to automatically increase a budget surplus or reduce a budget deficit.

The supply of loanable funds curve is upward-sloping because a rise in the interest rate

a. decreases the opportunity cost of firms' investment spending b. stimulates the economy c. decreases the opportunity cost to households of consuming d. increases the opportunity cost to households of consuming e. increases the government's desire to run a budget deficit