Which of the following is not an effective technique for alleviating scarcity?

Autonomous consumption is defined as:

a. the level of consumption that depends only on the exchange rate. b. the consumption expenditures incurred by the government. c. the level of consumption that does not depend on income. d. an equilibrium condition that needs to be met for the aggregate expenditure model to work. e. the part of consumption that is related to investment.

For developing countries, one of the dangers inherent in the inflows of capital that finance investment is

A. increasing unemployment that accompanies foreign investment. B. rapid outflows of funds that put pressure on exchange rates. C. the deflation that accompanies inflows of foreign capital. D. the inflation that accompanies outflows of foreign capital.