In the United States, the Federal Reserve pursues an inflation targeting policy of keeping inflation below 2 percent

Other things constant, when households decide to save more, the supply of credit rises, interest rates ________ and business investment ________

A) rise; rises B) rise; falls C) fall; rises D) fall; falls

If aggregate expenditure at a particular level of income is less than output,

a. output will increase b. output will decrease c. output will remain the same d. output will rise slightly and then level off e. we cannot determine what will happen to output