The demand for money as a cushion against unexpected contingencies is called the

In the short run, when the Fed increases the federal funds rate,

A) the real interest rate rises and investment does not change. B) the real interest rate is unaffected but investment still decreases. C) the real interest rate rises and investment decreases. D) there is no effect on investment because investment depends on the real interest rate. E) the real interest rate falls and investment increases.

The phenomenon of nonparticipation appears to be a permanent state

Indicate whether the statement is true or false