If disposable income increases by $400 billion and consumption increases by $300 billion, the MPC equals

In the monetary small open-economy model with a fixed exchange rate, an increase in the foreign price level has which impact on domestic money demand?

A) It increases it. B) It decreases it. C) It has no impact. D) It depends.

An increase in unemployment benefits is likely to: a. reduce a person's incentive to look for work

b. reduce the opportunity cost of remaining employed. c. provide a better safety net for employed families. d. decrease the tax imposed on consumers. e. increase the need to accept the first job available after becoming unemployed.