1. An increase in the price level and a reduction in output
would result froma.a fall in stock prices.b.a decrease in the supply of an important resource.c.an increase in government expenditures.d.an increase in taxes.2. The interest-rate effecta.depends on the idea that decreases in interest rates increase
the quantity of goods and services demanded.b.depends on the idea that decreases in interest rates decrease
the quantity of goods and services demanded.c.is responsible for the downward slope of the money-demand
curve.d.is the least...