Starting from long-run equilibrium, an increase in autonomous consumption results in ________ output in the short run and ________ output in the long run.

An increase in the interest rate will cause

A) a reduction in the supply of central bank money. B) a reduction in the demand for currency. C) a reduction in the demand for reserves. D) all of the above E) both B and C

You are expecting to receive $3,500 at some time in the future. Which of the following would unambiguously increase the present value of this future payment?

a. Interest rates rise and you get the payment sooner. b. Interest rates rise and you have to wait longer for the payment. c. Interest rates fall and you get the payment sooner. d. Interest rates fall and you have to wait longer to get the payment.