The marginal propensity to save is always larger than the marginal propensity to consume

In the traditional Keynesian model, an increase in government spending

A) causes the C + I + G + X line to shift upward by the full amount of the increase in government spending. B) causes the C + I + G + X line to shift upward by an amount less than the increase in government spending. C) causes the C + I + G + X line to shift upward by more than the increase in government spending. D) causes no change in the C + I + G + X line.

Economic fine-tuning is the (usually frequent) use of

A) monetary policy that is based on a predetermined steady growth rate in the money supply to counteract even small undesirable movements in economic activity. B) only fiscal policy to counteract even small undesirable movements in economic activity. C) monetary and fiscal policies to counteract even small undesirable movements in economic activity. D) fiscal policy that both balances the budget and counteracts even small undesirable movements in economic activity.