An increase in business taxes is likely to reduce aggregate demand because of a decrease in private investment.

According to this Application, the Fed increased its lending by hundreds of billions of dollars to financial institutions as a response to the ongoing financial crisis

This increase in loans to financial institutions increased the supply of money in the economy. When the supply of money increases, the money supply curve will A) shift to the right, increasing the interest rate. B) shift to the left, increasing the interest rate. C) shift to the right, decreasing the interest rate. D) shift to the left, decreasing the interest rate.

Which of the following statements is true of a flexible exchange rate system?

A) Market forces tend to undervalue a currency over time. B) Market forces tend to overvalue a currency over time. C) Market forces do not affect exchange rates between different currencies. D) Market forces tend to push the exchange rate of a currency to market clearing levels over time.