If the marginal propensity to consume is 4/5, then a decrease in government spending of $1 billion decreases the demand for goods and services by $5 billion

Which of the following is NOT true of the yield curve for U.S. Treasury securities?

A) Typically, it slopes upward. B) It depicts the relationship among yields on securities of different maturities. C) Typically, it shifts up or down rather than twists. D) Typically, it slopes downward.

Which of the following will cause the money supply to decline?

A) lowering the discount rate B) raising the required reserve ratio C) an open market purchase D) an open market sale E) b and d