The marginal propensity to consume is always
a. greater than 1
b. between 0 and 1
c. less than 0
d. between 0 and -1
e. between 0 and 0.6
B
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Under which one of the following conditions will economic theory indicate that all of a resource should be consumed in the current period?
a. Whenever the discount rate is positive b. When the marginal net benefits in the current period are always greater than the marginal net benefits in the future c. When substitute resources are available d. When the marginal net benefits in the future are not discounted e. When the users costs are positive Feedback
Based on the figure below. Starting from long-run equilibrium at point C, a favorable inflation shock that decreases inflation from ? to ?1 will lead to a short-run equilibrium at point ________ and eventually to a long-run equilibrium at point ________, if left to self-correcting tendencies. 
A. A; C B. B; A C. B; C D. A; B