Author Question: Refer to Figure 26-5. In the figure above, the movement from point A to point B in the money market ... (Read 143 times)

Mr3Hunna · **on:** Jun 29, 2018

Refer to Figure 26-5. In the figure above, the movement from point A to point B in the money market would be caused by

A) an open market sale of Treasury securities by the Federal Reserve.
B) an increase in the price level.
C) a decrease in real GDP.
D) an increase in the required reserve ratio by the Federal Reserve.

Question 2

Consumption spending will ________ when disposable income ________.

A) increase; decreases B) decrease; increases
C) change unpredictably; decreases D) increase; increases