Use the following data to solve for equilibrium Y when AD =C+Ip+G+NX

C = $1,000 + 0.9YD; and YD = Y - TA, where TA = 0.2Y

Ip= $2,000 and G = $5,000

NX = $2,000 - 0.12Y

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All of the following are ways that a decline in interest rates impact AD except

a. increased investment spending, especially residential construction

b. interest sensitive borrowing for consumers durable like cars

c. borrows with adjustable loans will have more discretionary income to spend

d. the US dollar will depreciate which should increase X

e. all of the above

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All of the following are currently policy tools used by the Fed except

a. the discount rate

b. open market operations

c. reserve requirements on demand deposit

d. quantitative easing