An increase in the price of input used to produce a product will lead to
A) a decrease in the demand for that product.
B) a decrease in quantity supplied of that product
C) a decrease in the supply of that product.
D) an increase in the supply of that product.
Question 2
The indirect effect of an increase in the money supply is to
A) increase aggregate demand as people try to spend their excess money balances.
B) increase aggregate demand as interest rates fall and investment spending increases.
C) increase aggregate supply as firms anticipate future profits.
D) decrease the price level.
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