Between 1980 and 2005, the Vanguard Index Fund earned 12.3%/year, while the average mutual fund investor earned:

Answer the following statement true (T) or false (F)

1) The smaller the number of good substitutes for a product, the greater will be the price elasticity of demand for it. 2) The smaller the number of good substitutes for a product, the greater will be the price elasticity of demand for it. 3) Generally speaking, the demand for luxury goods is more price elastic than is the demand for necessities. 4) Generally speaking, the smaller the percentage of one's total budget devoted to a particular product, the more price elastic will be the demand for that product.

The MPC and MPS in the economy:

Answer the question on the basis of the following table:
A.  are .4 and .6 respectively.
B.  are .6 and .4 respectively.
C.  are .8 and .2 respectively.
D.  cannot be determined from the information given.