Along the 45 reference line planned real expenditures equal real disposable income. consumption expenditures equal saving. the average propensity to consume is represented. the relationship between consumption and income is represented. QUESTION 7 All transaction deposits are included in M1 only. M2 only. both M1 and M2. savings balances only. QUESTION 8 An example of fiscal policy is an increase in government spending. a cost-of-living adjustment in Social Security payments to the elderly. a reduction in investment spending by the private sector. an increase in autonomous spending by consumers. QUESTION 9 As a "lender of last resort," the Fed provides loans to banks experiencing temporary liquidity problerns. bails out any corporation the government has decided should not fail. is obligated to bail out any depository institution in the country that is in financiat diffculty. protects the deposits of $100,000 or less in all commercial banks in the country