If the Fed wants to increase AD,it should do which of the following?

Name: If the Fed wants to increase AD,it should do which of the following?
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Question

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Conducting open market purchases will increase the money supply and lower interest rates, inducing more consumer and business spending, and therefore increasing aggregate demand. Raising the discount rate or required reserve ratio would have the opposite effect, decreasing the money supply and increasing interest rates, leading to lower aggregate demand.

If the Fed Wants to Increase AD,it Should Do Which