A decrease in the money supply
a. lowers the interest rate, causing a decrease in investment and a decrease in GDP
b. lowers the interest rate, causing a decrease in investment and an increase in GDP
c. raises the interest rate, causing an increase in investment and a decrease in GDP
d. raises the interest rate, causing an increase in investment and an increase in GDP
e. raises the interest rate, causing a decrease in investment and a decrease in GDP
E
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What best explains the pattern of bank collapses in the US?
a. The vast majority of banks closed early in the decade and the closing dropped significantly in the latter half of the decade. b. Banks collapsed consistently throughout the 1930s. c. The failure rate was relatively low early in the decade and grew steadily throughout the period.
If there is a surplus of a product, its price:
A. is below the equilibrium level. B. is above the equilibrium level. C. will rise in the near future. D. is in equilibrium.