A nation can determine how close it is to the classical range by considering its:

Which of the following would decrease the price level?

a) an increase in the expected price level. b) an increase in the natural rate of unemployment. c) a decrease in taxes. d) a decrease in the money supply.

If the quantity of money demanded is less than the quantity supplied at a given interest rate, what will happen to restore the market to equilibrium?

a. The public will try to buy bonds, the price of bonds will increase, and the interest rate will fall until the equilibrium is attained where the money demand and supply curves intersect. b. The public will try to sell bonds, the price of bonds will decrease, and the interest rate will rise until equilibrium is attained where the money demand and supply curves intersect. c. The public will try to sell bonds, the price of bonds will increase, and the interest rate will fall until equilibrium is attained where the money demand and supply curves intersect. d. The public will try to buy bonds, the price of bonds will increase, and the interest rate will rise until equilibrium is attained where the money demand and supply curves intersect. e. The public will try to buy bonds, the price of bonds will decrease, and the interest rate will fall until equilibrium is attained where the money demand and supply curves intersect.