The new European Central Bank is located in which country?

According to the interest-rate-based monetary policy transmission mechanism, an increase in the money supply generates

A) increased spending on consumer goods and services directly, which causes an increase in aggregate demand. B) an increase in aggregate supply since the supply of money is part of aggregate supply. C) lower interest rates, which causes an increase in planned real investment spending and an increase in aggregate demand. D) an increase in nominal GDP and a change in the price level, but no change in real GDP.

The effect on the IS curve of a reduction in taxes will be less the

A) flatter is the LM curve. B) steeper is the LM curve. C) greater the extent of "crowding out." D) greater is the marginal propensity to save.