If the Fed's Objective Is to Stimulate the Economy,which of the Following

question 95

Multiple Choice

If the Fed's objective is to stimulate the economy,which of the following gives the correct sequence of events?

• A)The money supply increases,interest rates decrease,investment increases,and AD increases.
• B)The money supply increases,interest rates decrease,investment increases,and AS decreases.
• C)The money supply decreases,interest rates increase,investment decreases,and AD decreases.

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