Assume that autonomous consumption equals $200 and that the mpc equals 0.8. If disposable income equals $1000, then total consumption equals

An unsterilized foreign-exchange intervention occurs

A) whenever a central bank purchases or sells domestic currency. B) whenever a central bank purchases or sells foreign currency. C) whenever a central bank allows the monetary base to respond to the sale or purchase of domestic currency. D) whenever a central bank fails to reduce its holdings of gold by the amount of a foreign-exchange purchase.

Under the expectations theory, an upward-sloping yield curve indicates that investors expect future short-term rates to

A) fall. B) rise. C) remain constant. D) either rise or remain constant.