Q1. Briefly discuss the similarities and differences between producer equilibrium and consumer equilibrium.
Q2. Assume that disposable income increases by $20 billion, consumption rises by $18 billion, and saving goes up by $2 billion. Illustrate what is the economy's MPC? Its MPS?
Q3. State whether the following statement is true or false AND elucidate why: "An increase in the interest rate paid on excess reserves will always cause an increase in the federal reserve funds rate."