Everything else held constant, a stronger dollar benefits ________ and hurts ________

In a simple Keynesian model, an increase in income leads to an increase in

A) savings. B) investment. C) the price level. D) the money supply.

Given the table above, suppose consumption in period two is $35,000. Then, the interest rate rises to five percent, and period-two consumption falls to $34,900. We may infer that ________

A) the income effect is stronger than the substitution effect B) the substitution effect is stronger than the income effect C) the substitution and income effects cancel out D) this consumer has a binding borrowing constraint