If the multiplier = 2.5, the MPC would be

Suppose a decrease in the supply of paper results in an increase in revenue. This indicates that

A) the demand for paper is inelastic. B) the demand for paper is elastic. C) the supply of paper is inelastic. D) the supply of paper is elastic.

Supply-side economics is based on the theory that:

A. budget deficits will stimulate demand, output, and employment. B. budget deficits will lead to higher interest rates, which will weaken their expansionary impact. C. higher tax rates will increase tax revenues. D. increases in aggregate supply lower the price level.