Refer to Figure 9.2. At price 0H and quantity Q1, consumer surplus is the area

Contractionary monetary policy is achieved by:

A) decreasing the amount of bank reserves and lowering the federal funds rate. B) decreasing the amount of bank reserves and raising the federal funds rate. C) increasing the amount of bank reserves and lowering the federal funds rate. D) increasing the amount of bank reserves and raising the federal funds rate.

Assuming no bequests, with a real rate of interest of 10 percent, wealth of $60,000, current income of $70,000, future income of $180,000 and future consumption of $158,000, current consumption must equal ________

A) $158,000 B) $150,000 C) $152,000 D) $130,000