1. If the economy is moving too slowly, which economic problem is more likely to exist-high unemployment or high inflation? In this situation, should the federal government increase taxes or decrease taxes? Should the federal government increase or decrease government spending?
2. If my marginal propensity to save is .15, what is my marginal propensity to consume? What multiplier do these figures imply?
3. If unemployment is a significant problem, should the federal government take action that would increase or decrease the deficit? Explain.

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