The law of demand implies that the quantity demanded of a commodity is inversely related to income, assuming other things that may affect demand remain the same.

If the marginal propensity to consume (MPC) is 0.96, the value of the spending multiplier is:

a. 25. b. 40. c. 96. d. 100.

Because it is a market economy, in the United States all research and development is done by private business firms

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