A Decision on the Part of the FOMC to Lower

Multiple Choice

A decision on the part of the FOMC to lower interest rates must necessarily be followed by

A) Fed open market purchases, which lower the money supply and reduce interest rates.
B) Fed open market purchases, which increase the money supply and reduce interest rates.
C) Fed open market sales, which lower the money supply and reduce interest rates.
D) Fed open market sales, which increase the money supply and reduce interest rates.
E) Fed open market purchases, which increase the money supply and increase interest rates.