In the analysis of the interest rate effect, when the price level changes, the quantity of money households and firms' want to hold changes in the ______ direction as interest rates, while investment changes in the _____ as the quantity RGDP demanded.
a. Same, same
b. Same, opposite
c. Opposite, same
d. opposite, opposite
Question 2
Which of the following is true at the equilibrium level of income?
a. Unplanned inventory changes are positive.
b. Firms are unable to produce the desired rate of output.
c. Autonomous consumption spending is equal to induced consumption spending.
d. Aggregate expenditures equal real GDP.
e. Unplanned investment spending is positive.
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