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1. If the marginal propensity to consume = 0.75, what is the value of the marginal propensity to save? O A. 0.75 O B. 0.25

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If the marginal propensity to consume = 0.75, what is the value of the marginal propensity to save? O A. 0.75 O B. 0.25 O C. none of the above OD. 1 OE. 0.5An increase in the supply of money leads to a(n) O A. decrease in inflation. O B. decrease in net exports. O C. increase in aggregate supply. O D. increase in aggregate demand. O E. decrease in real GDP.If leakages out of the circular flow are 40 percent of additional income, what is the size of the multiplier effect O A. 2 O B. 2.5 O C. 3 OD. 4 OE. 5\fAs the Canadian dollar strengthens, Canadian O A. exports decrease. O B. inflation increases. O C. imports decrease. O D. real GDP increases. O E. unemployment decreases.Which government fiscal policy is a positive demand shock? O A. decreasing transfer payments O B. decreasing government spending O C. increasing taxes O D. increasing government spending O E. none of the above

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