Author Question: If consumption is defined as C = 1,350 + 0.6Y, then the marginal propensity to consume is 0.6. ... (Read 68 times)

mpobi80 · **on:** Jun 29, 2018

If consumption is defined as C = 1,350 + 0.6Y, then the marginal propensity to consume is 0.6.

Indicate whether the statement is true or false

Question 2

Between September 2007 and March 2008 there was a substantial reduction in the demand for housing. What action did the Fed take in response to the reduction in the demand for housing?

A) The Federal Reserve cut the federal funds rate seven times.
B) The Federal Reserve decreased the required reserve rate.
C) The Federal Reserve raised the discount rate by 3 percentage points.
D) The Fed conducted open market sales of Treasury securities.