If consumption is defined as C = 4,500 + 0.75Y, then the marginal ...

[asan beg]

If consumption is defined as C = 4,500 + 0.75Y, then the marginal propensity to save is 0.25.
 
  Indicate whether the statement is true or false

Question 2

If the Fed chose to change its policy actions implemented during the heart of the recession faster than the timing suggested by the White House, this would be an indication of the Fed's
 
  A) independence. B) frictional relationship with the White House.
  C) changing its monetary policy target. D) lack of credibility.

[cassie_ragen]

Answer to Question 1

TRUE

Answer to Question 2

A