Multiple Choice
Use the following to answer questions .
Exhibit: The Bond Market 
-(Exhibit: The Bond Market) 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.
Correct Answer:
Verified
Correct Answer:
Verified
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