If the MPC in an economy is .9, a $1 billion increase in government spending will ultimately increase consumption by:
A. $1 billion.
B. $0.9 billion.
C. $10 billion.
D. $9 billion.
D. $9 billion.
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Refer to the figure below. The absolute value of the slope of the demand curve D1 is ________, and the absolute value of the slope of demand curve D2 is ________. 
A. 5/4; 4/5 B. 4/5; 5/4 C. 1/2; 2 D. 2; 1/2
The principle of decreasing marginal benefit implies that the
A) additional benefit from obtaining one more of a good or service decreases as more is consumed. B) additional benefit from obtaining one more of a good or service increases as more is consumed. C) total benefit from obtaining more of a good or service decreases as more is consumed. D) total benefit from obtaining more of a good or service remains the same as more is consumed.
The word "util" has been used by economists in the past as an objective measure of utility. Today economists believe that
A) the util truly is an objective, rather than a subjective, measure of utility. B) utility can be measured objectively because people can use prices of different goods to measure utility. C) utility cannot be measured objectively. D) all of the important conclusions of the economic model of consumer behavior depend on utility being measured objectively.
Government spending does not reallocate resources away from private uses when the economy is at full employment
Indicate whether the statement is true or false