When the price level falls
a. people want to hold more money.
b. the interest rate rises.
c. investment spending rises.
d. All of the above are correct.
c
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An open market purchase of government securities by the Fed will cause which of the following?
A) an excess quantity of reserves supplied and a reduction in the federal funds rate B) an excess quantity of reserves demanded and an increase in the federal funds rate C) an excess quantity of reserves demanded and a reduction in the federal funds rate D) an excess quantity of reserves supplied and an increase in the federal funds rate
When a minimum-wage law forces the wage to remain above the level that balances supply and demand, the result is a shortage of labor
a. True b. False Indicate whether the statement is true or false