S. If the MPC is .70, then a $100 billion change in disposable income will be associated with which change in the consumption function a. $20 billion b. $30 billion c. $70 billion d. $100 billion 6. in the short run, if the government attempts to increase aggregate demand, it should a. decrease government spending and increase taxes b. increase aggregate supply c. increase government spending and reduce taxes d. decrease aggregate supply 7. A change in which one of the following would be associated with a movement along the same consumption function a. current disposable income b. wealth c. the price level d. expected future income 8. The central bank for the United States is a. the Federal System b. the commercial banks c. Chase Manhattan bank d. the Federal Reserve Bank of New York 9. An asset is liquid if a. it can be exchanged for otherlitems of value without high transaction costs b. it is backed by government guarantee c. it earns interests d. all of the above are correct a (E