A decrease in the rate of interest, other things being equal, ...

[lilldybug07]

A decrease in the rate of interest, other things being equal, will cause a:
 a. rightward shift of the investment demand curve.
  b. movement upward along the investment demand curve.
  c. movement downward along the investment demand curve.
  d. leftward shift of the investment demand curve.

Question 2

If the crowding-out effect is strong, how will the potency of discretionary fiscal policy be affected?
 a. It will make fiscal policy more potent.
  b. It will make fiscal policy less potent.
  c. The potency of fiscal policy will be unaffected.
  d. The potency of contractionary will be reduced.

[diesoon]

Answer to Question 1

c

Answer to Question 2

b

[lilldybug07]

Thank you

[diesoon]

Happy to help you