In Figure 3-5 above, the marginal propensity to save is

Which of the following multiplier concepts is most important from the point of view of devising an activist policy?

A) the income and money-creation multipliers B) the dynamic multipliers, that is the timing of multiplier effects given a policy change C) the long-term multipliers, that is the total effect from several time periods given a policy change D) the money-creation multiplier

The shape of the costs curves may be traced back to

A) the law of diminishing marginal utility. B) the difference between the short run and the long run. C) the law of diminishing marginal returns. D) the fact that all production occurs in the long run.