The tax multiplier is calculated as 1 / (1 - b)

The consumption and saving schedules reveal that the:

A. MPC is greater than zero but less than one. B. MPC and APC are equal at the point where the consumption schedule intersects the 45- degree line. C. APS is positive at all income levels. D. MPC is equal to or greater than one at all income levels.

Overproduction of farm products in the European Community has been primarily the result of:

A. Low U.S. tariffs on imports of farm products B. Subsidies to farmers in the European Community C. Increasing world trade in agricultural commodities D. Quotas imposed by the European Community on imported products