Multiple Choice
If the Fed decreases the money supply,GDP
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
Correct Answer:
Verified
Correct Answer:
Verified
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