In the early 1960s, monetary theory rather than Keynesian theory dominated economics

In the federal funds market diagram, a decrease in the required reserve ratio

A) shifts the demand curve for reserves to the left. B) increases the federal funds rate. C) results in a multiple expansion of deposits, which increases the equilibrium level of reserves held by banks. D) shifts the supply curve for reserves to the right.

A decrease in the price level will most likely have what effect on the consumption function?

a. It will shift upward. b. It will shift downward. c. It will cause movement downward along the function. d. It will cause movement upward along the function.