Refer to the Given Figure Where the Nominal Interest Rate

question 51

Multiple Choice

Refer to the given figure where the nominal interest rate equals 6 percent and the money supply equals 600. If the Federal Reserve wants to lower the interest rate to 4 percent, it must ________ the money supply to ________.

• A)increase; 800
• B)decrease; 800
• C)increase; 1,000
• D)decrease; 400

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