1) When the Fed decreases the money stock, the money supply curve shifts to the ________ and the interest rate ________, everything else held constant.
A) right; rises
B) right; falls
C) left; falls
D) left; rises
2) When the Fed ________ the money stock, the money supply curve shifts to the ________ and the interest rate ________, everything else held constant.
A) decreases; right; rises
B) increases; right; falls
C) decreases; left; falls
D) increases; left; rises
3) ________ in the money supply creates excess ________ money, causing interest rates to ________, everything else held constant.
A) A decrease; demand for; rise
B) An increase; demand for; fall
C) An increase; supply of; rise
D) A decrease; supply of; fall