Which of the following statements is true?

a) Expansionary monetary policy (growth in the money supply) by the federal reserve initially raises the interest rate and then inflationary pressures can cause it to rise even further in long term.

b) interest rates tend to be increased by the Federal Reserve during a recession.

c) Foreign trade deficits (when imports are greater than exports) tend to cause interest rates to decline.

d) federal budget deficits drive interest rates up due to increased demand for loanable funds.

e) a rise in interest rates will increase the rate of return on stocks, causing investors to transfer funds from the bond market to the stock market, thus increasing stock prices.