If the Fed Increases the Money Supply,then

question 4

Multiple Choice

If the Fed increases the money supply,then:

• A)the interest rate declines and the quantity of money demanded increases.
• B)the interest rate declines and the quantity of money demanded declines.
• C)the interest rate increases and the quantity of money demanded increases.
• D)the interest rate increases and the quantity of money demanded declines.
• E)the interest rate increases but the quantity of money demanded remains unaffected.