1.

The demand for money is likely downward sloping because 0 the marginal revenue product of labor is decreasing. 0 interest sensitive consumption and business investment are both negatively impacted by increases in the interest rate. Q the government can always borrow what it wants. 0 interest sensitive consumption and business investment are both positively impacted by increases in the interest rate. The difference between nominal and real interest rates is that O nominal interest rates are what lenders receive and real interest rates are what borrowers pay. 0 nominal interest rates are what borrowers pay and real interest rates are what lenders receive. 0 real interest rates are what you get after having adjusted nominal rates for inflation. 0 real interest rates are almost always greater than nominal interest rates. A decrease in taxes will immediately shift 0 aggregate supply to the right. 0 aggregate demand to the left. 0 aggregate supply to the left. 0 aggregate demand to the right. An increase in worker productivity will 0 increase aggregate demand. 0 decrease aggregate supply. 0 increase aggregate supply. O decrease aggregate demand. The attacks of September 11, 2001 are a quintessential example of O a negative aggregate supply shock. O the rebound effect. 0 a positive aggregate supply shock. O a positive aggregate demand shock