Author Question: If the Fed increases the supply of bank reserves, ________. A) consumption falls B) investment ... (Read 57 times)

shenderson6 · **on:** Jun 30, 2018

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