If the marginal propensity to consume is 0.75 and investment spending decreases by $20 billion, what will be the overall effect on GDP?

During the recession phase of the business cycle

A) unemployment is usually falling. B) production is usually rising. C) interest rates are usually falling. D) income is usually rising.

According to Irving Fisher, velocity ________

A) is determined by institutions that affect the way individuals transact B) is affected by institutions only gradually C) is assumed constant in the short run D) all of the above E) none of the above