The marginal propensity to consume is 0.50, marginal propensity to invest is 0.20, and the marginal propensity to import is 0.05. What is the size of the multiplier?

The normal rate of return is the

A) average rate of return earned in an industry at a given point in time. B) opportunity cost of capital. C) return on capital associated with zero accounting profits. D) the amount paid to an investor when the firm is an on-going concern.

A decrease in supply _____ price and _____ the quantity sold.

Fill in the blank(s) with the appropriate word(s).