The relationship between consumer spending and income is known as the

If the demand for British pounds increases,

a. the equilibrium price of the pound will increase b. the equilibrium price of the pound will decrease c. the equilibrium price of the pound will not change d. the equilibrium price of the pound will change, but we need additional information to predict the direction of the change e. no one can predict what will happen

The classical theory predicts that decreases in the supply of savings will _______ interest rates and _______ investment.

Fill in the blank(s) with the appropriate word(s).