Suppose a consumption function is given as C = $150 + 0.75YD. The marginal propensity to save is

Everything else held constant, an increase in net taxes will cause the IS curve to shift to the ________ and aggregate demand will ________

A) right; increase B) right; decrease C) left; increase D) left; decrease

If money demand does not depend upon income, then

a. monetary policy cannot have any effect upon the economy. b. monetary policy will only affect the level of the price level. c. monetary policy will only affect interest rates. d. monetary policy will have a larger impact on income.