The classical theory predicts that increases in the supply of savings will _____ interest rates and _____ investment.
Fill in the blank(s) with the appropriate word(s).
lower; expand
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The CPI for 2012 was 121, and for 2013 it was 132. What was the inflation rate between 2012 and 2013?
A) 9.09 percent B) 11 percent C) 10 percent D) 8.3 percent E) 121.0 percent
The LM curve is the set of combinations of ________ such that ________
A) interest rates and real money balances, real income equals real money balances times (1/r) B) interest rates and real money balances, the money supply is equally demanded C) real income and real money balances, the production of output is equally demanded D) real income and interest rates, the production of output is equally demanded E) real income and interest rates, the money supply is equally demanded
According to Classical interest rate theory, which of the following will increase the equilibrium interest rate?
A) A decrease in investment B) A decrease in saving C) An increase in money demand D) A decrease in money demand
Which of the following cities does NOT contain a Federal Reserve bank?
A) Cleveland B) Dallas C) Los Angeles D) Boston