In commercial banking operations, there is a trade-off between liquidity and profitability

Assuming MPC = 0.5, a $2,000 decrease in intended investment will shift the aggregate expenditure curve down by

a. $2,000 and will decrease the equilibrium level of national income by $2,000 b. $2,000 and will decrease the equilibrium level of national income by less than $2,000 c. $2,000 and will decrease the equilibrium level of national income by more than $2,000 d. more than $2,000 and will decrease the equilibrium level of national income by more than $2,000 e. less than $2,000 and will decrease the equilibrium level of national income by less than $2,000

The failure of communism in a large number of countries is at least partly explained by

a. the fact that those countries relied absolutely on the invisible hand. b. the fact that those countries did little or nothing to restrict trade with other countries. c. the lack of information, on the part of central planners in those countries, about tastes and preferences in their economies. d. the lack of information, on the part of central planners in those countries, about how much authority the government had in affecting economic outcomes.