Behavior designed to take account of the reactions of one’s rivals to one’s own behavior.

To "accommodate" an expansionary fiscal policy, the Fed ________ the money supply in order to hold ________ constant

A) expands, the interest rate B) expands, real income C) contracts, the interest rate D) contracts, real income

A decrease in the supply of loanable funds and an increase in the demand for loanable funds will:

A. Increase the interest rate and the quantity of funds loaned B. Decrease the interest rate and the quantity of funds loaned C. Increase the interest rate, but the quantity of funds loaned may either increase or decrease D. Decrease the interest rate, but the quantity of funds loaned may either increase or decrease