Assuming no other change, there is a decrease in the nominal interest rate. How will the money supply in the economy change as a result of this change in the nominal interest rate?

A. There will be an increase in the money supply.

B. There will be a decrease in the money supply.

C. There will be an increase initially, but it will decrease afterwards.

D. There will be a decrease initially, but it will increase afterwards.

E. There will be no change in the money supply.

Eggs functioned as money in many agrarian economies in the 19th century. If a farmer compares his goat's worth at 1,500 eggs with his cow's worth of 4,500 eggs, which function of money is he using?

A. Store of wealth

B. Means of payment

C. Medium of exchange

D. Unit of account

E. Store of value

Bonds, stocks, and mutual funds are examples of ________ assets, while land, buildings, and vehicles are examples of ________ assets.

A. real; fixed

B. real; current

C. financial; real

D. current; financial

E. fixed; financial

The supply of loanable funds is ________ because households save more at higher interest rates, while the demand for loanable funds is ________ because firms prefer to borrow at lower interest rates.

A. upward sloping; downward sloping

B.vertical line; upward sloping

C. downward sloping; upward sloping

D. downward sloping; horizontal line

E. horizontal line; downward sloping

Use the data table to answer the question that follows.

Interest rate Bond prices Expected to increase DecreaseInterest rate Bond prices Expected to decrease | Remain unaffectedInterest rate Bond prices Remain unaffected DecreaseGOP $20 billion Household consumption $12 billion Government tax revenue $4 billion Government spending $5 billion Net exports\f\fReal interest rate S2 S R2 S1 R R1 D Q2 Q Q1 Quantity of loanable fundsNominal interest rate MS2 MS MS1 E MD Quantity of money\f\f