Which of the following is not "crowded out" by higher interest rates as a result of expansionary fiscal policy?

Suppose, at a given federal funds rate, there is an excess supply of reserves in the federal funds market

If the Fed wants the federal funds rate to stay at that level, then it should undertake an open market ________ of bonds, everything else held constant. If the Fed does nothing, however, the federal funds rate will ________. A) sale; increase B) purchase; increase C) sale; decrease D) purchase; decrease

Which of the following events would likely cause the largest increase in current consumption?

A) a permanent increase in annual salary of $2000 B) a one-time tax cut of $4000 C) a one-time increase in income (e.g. a bonus) of $4000 D) both B and C