Which of the following would most likely occur if the federal government decreased its spending and reduced the size of the budget deficit during a period of full employment?
a. The rate of inflation would decline.
b. The rate of inflation would rise.
c. A recession would develop.
d. Interest rates would fall.
a
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The figure below shows the supply and demand curves for oranges in Smallville. 
What is the marginal cost of producing the tenth pound of oranges?
A. $4 B. $2 C. $5 D. $3
If the marginal propensity to save (MPS) is 0.50, the value of the spending multiplier is:
a. 1. b. 2. c. 4. d. 9.
If national income is $100 billion, and MPC = 0.75, then autonomous consumption is ________ and MPS is ___________
a. $25 billion; 0.25 b. $75 billion; 0.75 c. unknown; 1.25 d. unknown; 0.25 e. $75 billion; 0.25
Commercially-run forestry companies have the most profit incentive to harvest trees from a forest:
A. Early in the forest growth cycle B. In the middle of the forest growth cycle C. Before the trees are fully mature D. After the trees can no longer grow