The paper money used in the United States is:

In the example of the peg between Britain and Germany, what would have been the case if Britain had allowed the pound to float and depreciate after Germany's GDP rise?

A) Britain would have suffered depreciation and a recession. B) Britain would have had to raise interest rates. C) Britain would no longer be eligible to join the new euro currency. D) Britain could have lowered interest rates and enjoyed an added boost to GDP.

Suppose that the consumption function crosses the 45-degree line at a disposable income level of $800 . Assume further that saving equals $200 when disposable income is $1,300 . This implies that the MPC must equal 0.6

a. True b. False Indicate whether the statement is true or false