When the Fed Purchases U

question 62

Multiple Choice

When the Fed purchases U.S.government securities through the open market,the money supply:

• A)increases,the interest rate falls,and the quantity of money demanded increases.
• B)falls,the interest rate falls,and the quantity of money demanded increases.
• C)increases,the interest rate increases,and the quantity of money demanded increases.
• D)falls,the interest rate increases,and the quantity of money demanded falls.
• E)falls,the interest rate falls,and the quantity of money demanded falls.