When insurance causes people to take more risks, this is called

The expenditure multiplier is larger than one because

A) an increase in autonomous expenditure induces further increases in aggregate expenditure. B) an increase in autonomous expenditure brings about a reduction in the real interest rate. C) additional expenditure induces lower incomes. D) an increase in autonomous expenditure induces further decreases in aggregate expenditure. E) the price level rises, thereby reinforcing the initial effect.

The figure shows the relationship between Moira's income and the quantity of macaroni that she demands. When income is less than $350 per month, macaroni ________

A) is an inferior good B) is a normal good C) has many substitutes D) has negative income elasticity