If the government reduces the effective tax rate on capital (in a closed economy), then the real interest rate ________ and saving ________.

If you withdraw currency from your bank savings account, you are

A) increasing M1, decreasing M2. B) increasing both M1 and M2. C) decreasing both M1 and M2. D) not affecting M1 or M2. E) increasing M1 but not affecting M2.

In a closed economy, the supply of goods and services must be equal to:

A. consumption. B. consumption + investment. C. consumption + investment + government purchases. D. consumption + investment + government purchases ? taxes.