Using Figure 1 above, if the aggregate demand curve shifts from AD2 to AD1 the result in the long run would be:

Repealing Regulation Q still left savings-and-loan associations with a problem: most of their __________ were still at __________ interest rates

A) assets; low B) assets; high C) deposits; low D) deposits; high

When the Fed buys U.S. government securities from a member bank, _____

a. there is a decrease in its assets b. there is an increase in its assets c. there is a decrease in its liabilities d. there is an increase in its liabilities e. its total assets and liabilities remain unchanged