Author Question: An increase in the interest rate, other things constant, decreases the amount of investment ... (Read 67 times)

MirandaLo · **on:** Jun 30, 2018

An increase in the interest rate, other things constant, decreases the amount of investment spending.
a. True
b. False
Indicate whether the statement is true or false

Question 2

When the Fed buys U.S. government securities from a bank, that bank's excess reserves and required reserves increase but total reserves decrease.
a. True
b. False
Indicate whether the statement is true or false