Other things the same, a government regulation that prevents using a current technology raises the price level.

If the marginal propensity to consume (MPC) is 0.8, the multiplier is

A) 0.8. B) 5.0. C) 1.2. D) 0.2.

In the current year, the CPI is 160 and during the previous year the CPI was 181. The inflation rate between these years is

A) 11.6 percent. B) -13.1 percent C) -013.1 percent. D) -11.6 percent. E) 13.1 percent.