Figure 11-1 -Refer to Figure 11-1. Suppose the Fed Takes Action That

Multiple Choice

Figure 11-1
-Refer to Figure 11-1. Suppose the Fed takes action that shifts the demand curve from S to S′, as illustrated in Panel (b) . 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.