An expected increase in the money supply will tend to cause A) ...

[s.tung]

An expected increase in the money supply will tend to cause
 
  A) an increase in stock prices.
  B) a reduction in stock prices.
  C) no change in stock prices.
  D) an ambiguous effect on stock prices.

Question 2

For this question, assume that investment spending depends only on the interest rate and no longer depends on output. Given this information, a reduction in government spending
 
  A) will cause investment to decrease.
  B) will cause investment to increase.
  C) may cause investment to increase or to decrease.
  D) will have no effect on output.
  E) will cause a reduction in output and have no effect on the interest rate.

[Christopher]

Answer to Question 1

C

Answer to Question 2

B

[s.tung]

Excellent

[juliaf]

TYSM