If the marginal propensity to consume (MPC) is 0.90, a $100 increase in investment spending, other things being equal, will cause an increase in equilibrium real GDP of:

The Federal Reserve's credit policy refers to

A) the Fed's direct lending to homeowners and students. B) regulations on terms on credit cards that banks issue. C) a direct credit on bank depositors' saving and checking accounts. D) the Fed's direct lending to financial and nonfinancial firms.

At the end of 2009, the national debt stood at 60 percent of GDP, substantially higher than its World War II level

a. True b. False