Use the Following to Answer Questions

question 34

Multiple Choice

Use the following to answer questions .
Exhibit: The Bond Market
-(Exhibit: The Bond Market) Suppose the Fed takes action that shifts the demand curve from D to D′, as illustrated in Panel (a) . As a result, the interest rate

• A) increases and investment increases.
• B) increases and investment decreases.
• C) decreases and investment increases.
• D) decreases and investment decreases.

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