If spending increased by $100, and the GDP increased $400 as a result, the MPC must be:

Economists Gary Becker and Kevin Murphy are associated with which of the following?

A) They discovered that price changes have both income and substitution effects. B) They have argued that social factors are not important in explaining the choices consumers make. C) Consumers appear to receive utility from consuming goods they believe are popular. D) They discovered the first example of a Giffen good.

Briefly explain the behavior of the Federal Reserve considering a balance of payments disequilibria within a fixed exchange rate system

What will be an ideal response?