In 2020, the Fed lowered the federal funds rate target and undertook quantitative easing. This policy transmits to real GDP by _______. A. decreasing saving and taxes B. increasing investment and short-run aggregate supply C. decreasing government transfer payments D. increasing consumption expenditure and investment Part 2 Draw a graph of aggregate demand and aggregate supply to illustrate your answer to the previous question. The graph shows the aggregate demand curve and the short-run aggregate supply in the United States in 2020. In 2020, the Fed lowered the federal funds rate target. Draw a curve to show the effect of this policy. Label it. Draw a point at the new equilibrium price level and new equilibrium real GDP