Which of the following might explain a decrease in national saving when the tax rate on savings is reduced?
a. its substitution effect on saving and its effect on the government budget
b. its substitution effect on saving but not its effect on the government budget
c. its effect on the government budget but not its substitution effect on saving
d. neither its substitution effect on saving nor its effect on the government budget
c
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Refer to the figure below. In response to gradually falling inflation, this economy will eventually move from its short-run equilibrium to its long-run equilibrium. Graphically, this would be seen as 
A. long-run aggregate supply shifting leftward B. Short-run aggregate supply shifting upward C. Short-run aggregate supply shifting downward D. Aggregate demand shifting leftward
________ usually increase(s) when the U.S. economy is in a recession and decrease(s) when the U.S. economy is expanding.
a. Consumer spending b. Planned investment c. Net Exports d. Unplanned investment
The inability of wages to adjust to market conditions is called ________
Fill in the blank(s) with correct word
Comparing the European and the U.S. central bank systems, the Executive Board of the European system resembles:
A. the Board of Governors. B. the FOMC. C. the Presidents of the regional Federal Reserve Banks. D. the Chairman of the Board of Governors of the Fed.