The reconstruction finance corporation multiple choice lent funds only to financial institutions with sufficient collateral. focused most of its spending on large urban cities in the northeast. was created by congress over president herbert hoover’s veto. was ruled unconstitutional by the supreme court. spent most of its money trying to prop up unstable local banks.

He interest rate effect is the change in real gdp caused by the federal reserve adjusting target interest rates. is the change in consumer and investment spending due to changes in interest rates resulting from changes in the aggregate price level. is the change in exports and imports, resulting from changes in the interest rate caused by changes in the aggregate price level. is the change in investment spending and government purchases caused by changes in money demand. is the change in interest rates, caused by changes to government purchases.