Question 30 0.56 pts A decrease in the supply of money by the Federal Reserve wi

Question

Question 30 0.56 pts A decrease in the supply of money by the Federal Reserve will cause: O an increase in the interest rate and subsequent increase in investment spending an increase in the interest rate and subsequent decrease in investment spending a decrease in the interest rate and subsequent decrease in investment spending O a decrease in the interest rate and subsequent increase in investment spending O O no change to the interest rate but an increase in investment spending Question 31 0.56 pts Which of the following is the best example of a transfer? wage payments to firefighters O social security payments to households O sales taxes on consumer products

Explanation / Answer

30) A decrease in money supply will increase the interest rate. Due to negative relation between investment and interest rate, Investment decreases due to increase in interrst rate.

Thus ans is B

31)transfer is unilateral where one party gets something without doing anything.

Thus ans is B. Because household dont provide anything to government in return

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