If you pay $17,500 for a $20,000 face value one-year Treasury bill, what is the rate of interest you will receive?

In the interest-rate-based transmission mechanism, a decrease in the money supply will

A) reduce investment, shift the aggregate demand function inward, and lower real Gross Domestic Product (GDP). B) reduce the rate of interest and the level of investment. C) increase the price level. D) shift the aggregate supply function inward and increase real Gross Domestic Product (GDP).

When demand changes and the demand curve shifts, equilibrium price and equilibrium quantity change in the same direction

Indicate whether the statement is true or false