1. According to liquidity preference theory, a decrease in money demand for some reason other than a change in the price level causes

a. the interest rate to fall, so aggregate demand shifts right.

b. the interest rate to fall, so aggregate demand shifts left.

c. the interest rate to rise, so aggregate demand shifts right.

d. the interest rate to rise, so aggregate demand shifts left

4. The interest rate falls if

a. the price level falls or the money supply falls.

b. the price level falls or the money supply rises.

c. the price level rises or the money supply falls.

d. the price level rises or the money supply rises.

5. If money demand shifted to the right and the Federal Reserve desired to return the interest rate to its original value, it could

a. buy bonds to increase the money supply.

b. buy bonds to decrease the money supply.

c. sell bonds to increase the money supply.

d. sell bonds to decrease the money supply

7. A tax cut shifts aggregate demand

a. by more than the amount of the tax cut.

b. by the same amount as the tax cut.

c. by less than the tax cut.

d. None of the above is necessarily correct.

8. A reduction in U.S net exports would shift U.S. aggregate demand

a. rightward. In an attempt to stabilize the economy, the government could increase expenditures.

b. rightward. In an attempt to stabilize the economy, the government could decrease expenditures.

c. leftward. In an attempt to stabilize the economy, the government could increase expenditures.

d. leftward. In an attempt to stabilize the economy, the government could decrease expenditures.

9. Critics of stabilization policy argue that

a. "animal spirits" must be offset by active monetary policy.

b. active monetary policy is necessary for steady economic growth.

c. the lag problem ends up being a cause of economic fluctuations.

d. active fiscal policy is required for steady economic growth

Please give me a clear explanation to understand.