About 31% of the national debt owed to individuals is owed to __________.

• foreigners
• importers
• loan cooperatives
• venture capitalists

Keynes believed that marginal propensity to consume (MPC) is constant. Therefore, if income increases from $40,000 to $50,000, the increase in consumption will be __________ the increase when income increases from $80,000 to $90,000.

Group of answer choices

• smaller than
• larger than
• the same as
• unrelated to

Contractionary fiscal policy consists of __________.

• increasing government purchases, eliminating transfer payments, or cutting taxes
• increasing government purchases, decreasing transfer payments, or eliminating taxes
• decreasing government purchases, raising transfer payments, or cutting taxes
• decreasing government purchases, decreasing transfer payments, or increasing taxes

The current quantity theory of money holds that, in the long run, the level of output is __________.

Group of answer choices

• a direct function of the money stock
• a direct function of the price level
• independent of both the money stock and the price level
• directly related to the money stock but indirectly related to the price level