A decrease in the interest rate will cause a$($ n $)$

increase in the transactions demand for money.

decrease in the amount of money held as an asset.

increase in the amount of money held as an asset.

decrease in the transactions demand for money.

Multiple Choice $1$ point

A major advantage of the built$-$in or automatic stabilizers is that they

simultaneously stabilize the economy and reduce the absolute size of the public debt.

guarantee that the federal budget will be balanced over the course of the business cycle.

require no legislative action by Congress to be made effective.

automatically produce surpluses during recessions and deficits during inflations.

$106$

Multiple Choice

$1$ point

Which one of the following would not shift the aggregate demand curve?

a change in the price level

depreciation of the international value of the dollar

an increase in personal income tax rates

a decline in the interest rate at each possible price level