Author Question: A reduction in the money supply will result in: A) a lower interest rate and more negative output ... (Read 121 times)

leilurhhh · **on:** Jun 30, 2018

A reduction in the money supply will result in:

A) a lower interest rate and more negative output gap
B) a higher interest rate and more positive output gap
C) a lower interest rate and more positive output gap
D) a higher interest rates and more negative output gap

Question 2

An decrease in the real interest rate will cause an increase in ________.

A) consumption
B) planned investment
C) net exports
D) all of the above
E) none of the above