You lose your job and as a result your demand for steak falls. This implies that you consider steaks to be a

In the above figure, when real disposable income is less than 600, then

A) consumption is less than disposable income. B) consumption is the same as disposable income. C) consumption is more than disposable income. D) the MPC will fall.

In the figure above, what is the size of the multiplier?

A) 0.25 B) $2 trillion C) 4.0 D) $0.5 trillion E) More information is needed to determine the size of the multiplier.