As a result of increased use of credit cards,
A) the demand for money has decreased and there has been a movement up along the demand for money curve.
B) the demand for money has decreased and there has been a movement down along the demand for money curve.
C) the equilibrium nominal interest rate has decreased and bond prices have fallen.
D) the demand for money has decreased and the demand for money curve has shifted leftward.
E) the equilibrium nominal interest rate has increased and bond prices have decreased.
Question 2
According to the Application, economist John B. Taylor found that the temporary tax cuts which were a part of the 2009 stimulus package
A) were primarily used to pay off home mortgage balances.
B) were split very evenly between consumption spending and household saving.
C) were very successful in stimulating consumption spending.
D) did very little to stimulate consumption spending.
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