A firm experiencing constant economies of scale will have a long-run average cost curve that is:

Suppose that income taxes are reduced by $400 billion and households increase consumption by 80% of the resulting change in disposable income. Suppose also that the multiplier is 2. What is the marginal propensity to consume?

A) 0.2 B) 0.4 C) 0.8 D) 1.6

Stockholders share in the profits of a corporation

a. in proportion to their years of stock ownership b. in proportion to their ownership of stock c. equally regardless of number of shares owned d. only if they participate in firm management decisions e. only if they attend stockholders' meetings