Refer to Figure 11.5. A decrease in the level of investment is best illustrated by diagram

The main purpose of the Fed is to

a. serve as the bankers' bank for member banks. b. regulate interest rates. c. print Federal Reserve Notes. d. regulate financial institutions. e. maintain the proper functioning of our money system.

Kyle puts a greater proportion of his portfolio into government bonds. Kyle's action

a. increases both risk and the average rate of return. b. decreases both risk and the average rate of return. c. increases risk, but decreases the average rate of return. d. decreases risk, but increases the average rate of return.