__________ consumption will __________ as a result of a decrease in taxes

The cost savings from outsourcing often lead to ________ for consumers and ________ for the outsourcing company

A) lower prices; more output B) lower prices; less output C) higher prices; more output D) higher prices; less output

Assume that the MPC is 0.75 and that the price level is "sticky". If the Federal Reserve increases the money supply and investment spending increases by $8 billion, then aggregate demand is likely to:

A. Increase by $6 billion B. Increase by $8 billion C. Increase by $32 billion D. Decrease by $8 billion