If the Fed increases the supply of bank reserves, ________. A) ...

[shenderson6]

If the Fed increases the supply of bank reserves, ________.
 
  A) consumption falls B) investment falls
  C) the federal funds rate falls D) the inflation rate falls

Question 2

Refer to the above table. The table gives the combinations of real disposable income and real consumption for a college student for a year. What is the value of the average propensity to consume when real disposable income equals 4,000?
 
  A) 0.7 B) -0.45 C) 1.45 D) 0.69

[smrtceo]

Answer to Question 1

C

Answer to Question 2

C

[shenderson6]

YES! Correct, THANKS for helping me on my review

[blakcmamba]

Thanks for the timely response, appreciate it