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When the Fed increases the money supply the equilibrium level of income changes. Which answer below list the correct reaction for: interest rate (i) and
When the Fed increases the money supply the equilibrium level of income changes. Which answer below list the correct reaction for: interest rate (i) and its effect on Investment (I), the impact on AD, Price and real GDP (y) a. (i) - goes down I - goes up AD - moves outward P - goes up Y - increases b. (i) - goes down I - goes up AD - moves outward P - goes up Y - decreases c. (i) - goes up I - goes up AD - moves outward P - goes up Y - increases d. (i) - goes down I - goes down AD - moves outward P - goes up Y - increases e. (i) - goes up I - goes down AD - moves inward P - falls Y - decreases
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