Question 4 220 If prices increased by 3% compared to last year, then the economy experienced 3% growth in Mi. the economy experienced inflation. O the economy experienced disinflation. O the economy experienced 3% growth in M2. Question 3 Which of the following is not a depository institution? Credit union. O Commercial bank O Mutual savings bank. O Pension fund. Question 2 In the liquidity preference framework, a decrease in the money supply leads tis O an increase in the interest rate because otherwise there would be excess supply of money O a decrease in the interest rate because otherwise there would be excess demand for money an increase in the interest rate because otherwise there would be excess demand for money, O a decrease in the interest rate because otherwise there would be excess supply of money. Interest rate risk is not a concern for the holders of either short or long term bonds is just as much of a concern for the holders of short term bonds for longer termos is more of a concern for the holders of shorter term bonds than for the holders of tot bonds. O is more of a concern for the holders of longer term bonds than for the holders of shorter em bonds