If the demand for money is insensitive to the interest rate, then the most effective expansionary policy would be

Pessimistic consumer expectations and decreased government spending are both associated with:

a. a downward movement along the aggregate demand curve. b. an upward movement along the aggregate demand curve. c. a leftward shift of the aggregate demand curve. d. a rightward shift of the aggregate demand curve. e. a steeper slope of the aggregate demand curve.

Which of the following is most likely to reduce the consumption of an exhaustible natural resource?

a. a decrease in monopoly control of the market for the resource b. government tax policies that give tax breaks to entrepreneurs who search for new reserves of the resource c. implementation of a price ceiling for the resource below its equilibrium price d. government macroeconomic policies that lower the interest rate on bonds