Answer Happy

QUESTION 14 Suppose households attempt to decrease their money holdings. To counter this decrease in money demand and stabilize output, the Federal Reserve will O a decrease government spending. O b.increase the money supply. Oc increase government spending d.decrease the money supply. QUESTION 15 Which of the following statements is correct for the long run? O a Output responds to the aggregate demand for goods and services, the interest rate adjusts to balance the supply and demand for loanable funds, the price level adjusts to balance the supply and demand for money, Ob Output is determined by the amount of capital, labor, and technology, the interest rate adjusts to balance the supply and demand for money; the price level adjusts to balance the supply and demand for loanable funds. Oc Output is determined by the amount of capital, labor, and technology, the interest rate adjusts to balance the supply and demand for loanable funds; the price level is relatively slow to adjust Od Output is determined by the amount of capital, labor, and technology; the interest rate adjusts to balance the supply and demand for loanable funds, the price level adjusts to balance the supply and demand for money.