Everything else held constant, an increase in government spending ________ aggregate ________

Open market purchase will result in:

A) increase in bank reserves and a decrease in the federal funds rate. B) increase in bank reserves and an increase in the federal funds rate. C) decrease in bank reserves and a decrease in the federal funds rate. D) decrease in bank reserves and an increase in the federal funds rate.

Which of the following is the best example of a System 2 decision and action?

A. Marty learns that his usual driving route to work will have significant delays due to construction but forgets and goes that way anyway. B. Doug eats a whole plate of nachos despite the fact it compromises his carefully planned diet. C. Bruce "goes with his gut" when choosing between two kinds of motorcycles to purchase. D. Chuck, who has contemplated a job change for a month and has other offers, chooses to quit when his boss makes him mad.