If we know that the slope of the consumption function is 0.6, then we know that if real disposable income increased by $1,000 billion, real consumption spending would

A monetary growth rule means that

A) the Fed will raise interest rates if it thinks the economy is growing faster than potential. B) the money supply should grow at a constant rate. C) the Fed will lower interest rates if it thinks a recession is on the horizon. D) the money supply should grow in response to economic conditions.

The immediate effect of a member bank's sale of U.S. government securities to the Fed is a(n):

a. increase in that bank's required reserves. b. decrease in that bank's required reserves. c. increase in that bank's excess reserves. d. decrease in that bank's excess reserves. e. decrease in the Fed's assets.