As a result of an increase in the money supply, the aggregate demand will shift to the left.

The Fed has attempted to solve the problems of being unable to directly control the variables that determine economic performance and the timing lags in observing and reacting to economic fluctuations by

A) pressing Congress for legislation which would expand its powers. B) using targets to meet its goals. C) abandoning some goals in order to achieve others. D) devising new monetary policy tools.

The slope of the consumption function:

A. is horizontal. B. equals 1. C. equals the marginal propensity to consume. D. is vertical.