how would you answer these

Font Paragraph Styles 22. If Congress raises taxes and the Fed reduces money supply, then in the short run, the two policies would lead to: a lower income but we don't know if interest rate will rise or not. b. higher income but we don't know if interest rate will rise or not. c. a lower interest rate but we don't know if income will rise or not. d. a higher interest rate but we don't know if income will rise or not. 28. In early 2020, some commentators warned that the unprecedented global pandemic crisis would lead to Greater Depression. This type of prediction led many to revisit the Great Depression in the 1930s to see if there is any parallel. At the time, no one could rule out the possibility of another depression. Yet many economists believed that the very mistakes that had led to the Great Depression could be avoided this time. What are the policy mistakes that had led to the Great Depression? a Fed failed to follow Walter Bagehot's dictum that during a financial panic, central banks should lend freely to solvent firms against good collateral at penalty rates. b. Fed allowed the money supply to fall by one-fourth, which likely caused the deflation in the early 1930s. c. Fiscal policy was tightened to pursue a balanced budget. d. The U.S. government did not abandon the gold standard until 1933 (the gold standard constrains the monetary policy). e. All of the above are thought to be the policy errors made at the time