If the consumption function is C = 20 + 0.8YD, then an increase in disposable income by $100 will result in an increase in consumer expenditure by

Proponents of monetary policy based on fixed rules base their position on the assumption of a vertical aggregate supply curve.

a. true b. false

Who sells what to whom

A) has been a major preoccupation of international economics. B) is not a valid concern of international economics. C) is not considered important for government foreign trade policy since such decisions are made in the private competitive market. D) is determined by political rather than economic factors. E) is less important than international economic theory.