From 1950 to 2007, the United States experienced ________ business cycle expansions, followed by ________ recessions

If the marginal propensity to consume is ________, then a $2 trillion increase in disposable income increases consumption expenditure by $1.2 trillion. If the marginal propensity to consume is ________, then a $2 trillion increase in disposable income increases consumption expenditures by $1.6 trillion.

A) 0.6; 0.8 B) 1.67; 2.25 C) 1.2; 1.6 D) 6.0; 8.0 E) None of the above because a $2 trillion increase in disposable income always leads to a $2 trillion increase in consumption expenditure.

Since the slope of a downward-sloping demand curve is constant, the price elasticity of demand does not change when moving along this line

a. True b. False Indicate whether the statement is true or false