Which of the following represents the amount of income that is actually available to people for consumption and saving?

The sharp increase in the excess reserves held by the commercial banking system since the second half of 2008 increases the potential for

a. a sharp contraction in the money supply, which is likely to increase the length and severity of the recession. b. a rapid increase in the money supply, potentially leading to inflation. c. a gradual increase in the money supply, following the trend of the previous decade. d. a reduction in the ability of banks to extend additional loans.

Measured as a share of the economy, government expenditures on ____ have declined during the last four decades

a. health care b. national defense c. transfer payments d. Social Security benefits