If the Fed increases the money supply in response to positive demand shocks,it
A) lowers the interest rate
B) reduces each type of unemployment
C) adds its own positive demand shock
D) creates financial stability
E) crowds out private investment

Question

Quizplus · Accepted Answer

The Answer of If the Fed increases the money supply in response to positive demand shocks,it
A) lowers the interest rate
B) reduces each type of unemployment
C) adds its own positive demand shock
D) creates financial stability
E) crowds out private investment

If the Fed Increases the Money Supply in Response to Positive