26. Which of the following statements is true?

a	Nonincome determinants of consumption include wealth, household debt, and expectations.
b	An increase in wealth shifts the consumption curve down and the saving curve up.
c	Lower debt levels (debt burden) shift the consumption curve up and the saving curve down.
d	All of the above.
e	Only a) and c)

25. Which of the following statements is true?

a	Increases in spending can push up prices (inflation), and with higher prices any given amount of spending will buy less production.
b	The spending multiplier intensifies the effect of an initial spending change, whether it is an increase or decrease.
c	The spending multiplier is based on two facts: One, the economy has continuous flows of expenditures and income (a ripple effect) in which income received by person comes from money spent by another person, and so forth. Two, any change in income will cause both consumption and saving to vary in the same direction as the initial change in income.
d	All of the above.
e	Only a) and b)

24. Which of the following statements is true?

a	The multiplier works in both directions (up and down).
b	The multiplier effect occurs because of the interconnectedness of the economy.
c	The importance of the spending multiplier is that a small change in investment plans or consumption-saving plans can cause a much smaller change in the equilibrium level of GDP.
d	All of the above.
e	Only a) and b)