The Fed affects aggregate demand through monetary policy by ...

[craiczarry]

The Fed affects aggregate demand through monetary policy by changing
 
  A) tax rates on only interest income and so influencing disposable income.
  B) government expenditure and so influencing the budget balance.
  C) the quantity of reserves and determining government expenditure.
  D) tax rates and influencing disposable income.
  E) the federal funds rate and the quantity of reserves.

Question 2

Refer to the figure above. What is the total surplus before Barylia opens up to free trade?
 
  A) 250
  B) 325
  C) 800
  D) 1,125

[Tabitha_2016]

Answer to Question 1

E

Answer to Question 2

C

[craiczarry]

Thanks for the timely response, appreciate it

[bulacsom]

Gracias!