1.4 All of the following changes will shift the demand for investment to the right, EXCEPT for a. An increase in the productivity of new capital goods. b. A decrease in the real interest rate. c. The expectation of further GDP growth. d A decrease in the corporate income tax. 1.5 Which of the following will lead to a decrease in the country's money supply. a. A decrease in income tax rate. b. A decrease in the discount (repo) rate. c. An open market purchase of government bonds by the Central Bank. d. An increase in reserve requirements. 1.6 If money is neutral, a. an increase in the money supply does nothing. b. a change in the money supply only affects real variables such as real output. c. a change in the money supply only affects nominal variables such as prices and nominal wages. d. change in the money supply reduces velocity proportionately; therefore there is no effect on either prices or real output