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Author Question: In the above figure, if the economy is at equilibrium at E1, the Fed would most likely A) attempt ... (Read 41 times)

awywial

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on: Jun 30, 2018
In the above figure, if the economy is at equilibrium at E1, the Fed would most likely
 
  A) attempt to lower the aggregate demand in the economy.
  B) attempt to lower the price level below 120.
  C) adopt an expansionary monetary policy.
  D) adopt a contractionary monetary policy.

Question 2

If the consumption function is C = 25 + 0.9y and income increases by 100, then autonomous consumption spending will be
 
  A) 10. B) 25. C) 90. D) 115.


sierrahalpin

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Reply #1 on: Jun 30, 2018
Answer to Question 1

C

Answer to Question 2

B


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