Mass production was made possible by mass consumption, a national market and international trade

Using the liquidity-preference model, when the Federal Reserve increases the money supply, a. the equilibrium interest rate decreases

b. the aggregate-demand curve shifts to the left. c. the quantity of goods and services demanded is unchanged for a given price level. d. the short-run aggregate-supply curve shifts to the right.

Economists often evaluate a theory in terms of how consistently and accurately it predicts what happens. Implicit in this position is the belief that

A) if the theory's predictions are consistently accurate, then there is a fairly good chance that the theory is a good explanation of how things work. B) if the theory's predictions are consistently accurate, then there is a fairly good chance that the theory will be accepted by others. C) if the theory's predictions are consistently accurate, then there is a fairly good chance that the theory's assumptions (even if they initially seem unrealistic) capture something that is essential to explaining what it is that the theory is trying to explain. D) all of the above