26. All other things being equal, an increase in the supply of loanable funds in the banking system will have what effect on the interest rate? A The interest rate will drop _B. The interest rate will increase C. The interest rate will not change D. None of the above 27. All other things being equal a drop in the interest rate will have what effect on business and consumer spending? _A. The change will increase business investment but decrease consumer spending _B. The change will have no effect on either business investment or consumer spending C. The lower cost of borrowing will increase both business investment and consumer spending _D. None of the above 28. A restrictive monetary policy would be used to help meet which primary goal of the fed? _A Increasing employment _B. Decreasing inflation C. Increasing economic activity _D. None of the above 29. An example ofleading economicindicators is: A Index of consumer B. Average weekly hours for manufacturing C. Index of new orders from consumers D. All of the above 30. An example oflagging economic indicator is: A. Average duration of unemployment B. Building permits C. Index of consumer expectations D. Manufacturers new orders