3.

Which one of the following statement is FALSE?

A. None of the above/below

B. A stimulus package increases the money supply and decreases the interest rate.

C. A stimulus package will cause demand for goods and services to increase over the short run and cause prices to increase in the long run.

D. An increase in the money supply will lead to demand for investment and consumption goods to increase in the short run and cause prices to decrease in the long run.