Making the buying and selling of a good illegal shifts the demand curve ________ and shifts the supply curve ________

If the Fed lowers the federal funds rate, which of the following will NOT happen?

A) The real interest rate falls. B) Other short-term interest rates fall. C) Aggregate demand increases. D) Real GDP increases. E) The price level falls.

Other things the same, which of the following would both make foreigners more willing to engage in U.S. portfolio investment?

a. U.S. interest rates rise, the default risk of U.S. assets rise b. U.S. interest rates rise, the default risk of U.S. assets fall c. U.S. interest rates fall, the default risk of U.S. assets rise d. U.S. interest rates fall, the default risk of U.S. assets fall