If both market demand and supply decrease simultaneously, then ...

[JGIBBSON]

If both market demand and supply decrease simultaneously, then equilibrium quantity will (be) ____ and equilibrium price will (be) ____.
 a. increase; increase
 b. indeterminate; decrease
  c. decrease; indeterminate
  d. decrease; decrease

Question 2

Each additional round of the multiplier process will tend to be larger:
 a. the smaller the MPC.
 b. the greater the rate of income taxation.
 c. the less people save from increases in their incomes.
 d. the larger the fraction of each dollar of domestic income spent on imported goods.
  e. in each of the above cases.

[flexer1n1]

Answer to Question 1

c

Answer to Question 2

c

[JGIBBSON]

Thanks for the timely response, appreciate it

[juliaf]

Gracias!