If the marginal propensity to consume is 0.8, the marginal propensity to save is:

Since October 2008, Congress has granted the Fed an authority to

A) pay banks interest on both required reserves and excess reserves. B) charge banks interest on both required reserves and excess reserves. C) charge banks interest on required reserves but pay them interest on excess reserves. D) charge banks interest on excess reserves but pay them interest on required reserves.

When law-makers impose ceilings on the amount of annual interest charged by lenders, their actions have the effect of

A) excluding certain borrowers from the legally regulated credit market. B) expanding retail sales. C) increasing the number of loans made. D) lowering interest rates for most borrowers. E) redistributing income from creditors to debtors.