Exhibit 8-1 Disposable income and consumption data
Disposable Income(Y)
Consumption(C)
       0
   500
1,000
1,400
2,000
2,200
3,000
2,900
4,000
3,500
5,000
4,000

In Exhibit 8-1, when disposable income (Y) is increased from $1,000 to $2,000, the marginal propensity to consume is:

A contractionary monetary policy raises the real interest rate, causing the domestic currency to ________, thereby ________ net exports

A) appreciate; raising B) appreciate; lowering C) depreciate; raising D) depreciate; lowering

The thrift institutions:

a. were nonprofit banking institutions. b. were owned by the Federal Reserve. c. historically offered only savings accounts, not checking accounts. d. controlled the U.S. monetary policy prior to the establishment of the Federal Reserve. e. were monitored by the Federal Deposit Insurance Corporation.