If the Fed Purchases U.S.government Securities,gross Domestic Product

question 105

Multiple Choice

If the Fed purchases U.S.government securities,gross domestic product:

• A)increases because the resulting increase in the interest rate leads to a decrease in investment.
• B)increases because the resulting decrease in the interest rate leads to an increase in investment.
• C)decreases because the resulting increase in the interest rate leads to a decrease in investment.
• D)decreases because the resulting increase in the interest rate leads to an increase in investment.
• E)decreases because the resulting decrease in the interest rate leads to an increase in investment.

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