In Year 1, the price level was 120 and the average nominal income was $30,000. In Year 2, the price level was 125 and the average nominal level of income was $32,000. What happened to real income from Year 1 to Year 2?

Which of the following would cause the equilibrium price of ketchup to increase and the equilibrium quantity of ketchup to decrease?

A) an increase in the price of mustard, a substitute for ketchup B) a decrease in the price of tomatoes C) an increase in the price of tomatoes D) an increase in the price of french fries, a complement for ketchup

The Fed's quantitative easing is to purchase ________ to affect credit spreads

A) long-term securities B) short-term securities C) both long-term and short-term securities D) private assets