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Question 22

Which is most likely to be affected by changes in the rate of
interest?

A.

tax rates

B.

government spending

C.

the imports of the economy

D.

investment spending

4 points

Question 23

Question: Question 22Which is most likely to be affected by changes in the rate ofinterest?A.tax r... Assume that the Federal Reserve lowers interest rates to
increase investment spending. This monetary policy is most likely
to shift
A.

AD2 to AD1

B.

AD4 to AD3

C.

AD3 to AD2

D.

AD3 to AD4

4 points

Question 24

A restrictive monetary policy would be most consistent with

A.

an increase in the federal funds rate and a decrease in the
money supply

B.

a decrease in the federal funds rate and a decrease in the money
supply

C.

an increase in the federal funds rate and an increase in the
money supply

D.

a decrease in the federal funds rate and an increase in the
money supply

4 points