Everything else held constant, a decrease in net taxes ________ aggregate ________

Exhibit 20-3 Money market demand and supply curves ? As shown in Exhibit 20-3, assume the money supply curve shifts rightward from MS1 to MS2 and the economy is operating along the intermediate segment of the aggregate supply curve. The result will be a:

A. higher investment, lower real GDP, and lower price level. B. lower investment, lower real GDP, and lower price level. C. higher investment, higher real GDP, and higher price level. D. higher interest rate and no effect on real GDP or the price level.

If expectations about the future don't change at all, then an economic downturn will generally:

A. increase savings at a given interest rate and shift the supply curve for loanable funds to the right. B. decrease savings at a given interest rate and shift the supply curve for loanable funds to the right. C. decrease savings at a given interest rate and shift the supply curve for loanable funds to the left. D. increase savings at a given interest rate and shift the supply curve for loanable funds to the left.