A contractionary monetary policy leads to higher interest rates that discourage consumer borrowing for big-ticket items, such as houses and cars

If Veronica withdraws $1,500 from her checking account and deposits it in her savings account, then M1 will ________ and M2 will ________

A) decrease; increase B) increase; not change C) decrease; not change D) not change; not change

One result of the agriculture price supports cited in the text is that

A) sometimes surplus food is given away. B) food shortages result in most cases. C) small farms receive most of the benefits. D) none of the above.