Between 1945 and 1950, federal expenditures (a) dropped by ...

[cnetterville]

Between 1945 and 1950, federal expenditures
 
  (a) dropped by two-fifths despite the Marshall Plan.
  (b) dropped by two-fifths because of dissipation of wartime expenditures.
  (c) increased by two-fifths because of increased spending in private consumer and business markets.
  (d) increased by two-fifths because of the Marshall Plan.

Question 2

According to the Keynesian fixed wage theory, real wages should be
 
  a. positively correlated with income.
  b. not correlated with income.
  c. fixed.
  d. negatively correlated with income.

[johnpizzaz]

Answer to Question 1

(a)

Answer to Question 2

D