Refer to Figure 26-5. In the figure above, the movement from ...

[Mr3Hunna]

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

[Kedrick2014]

Answer to Question 1

B

Answer to Question 2

D

[Mr3Hunna]

Excellent

[olderstudent]

Thanks for the timely response, appreciate it