-If the Fed increases the quantity of money and lowers the federal funds rate, real GDP_{--------------------} and the price level _{--------------------}. A)decreases; increases B)increases; decreases C)decreases; decreases D)increases; increases E)increases; does not change

Question

Quizplus · Accepted Answer

Increasing the money supply and lowering interest rates typically stimulate economic activity, leading to an increase in real GDP and a rise in the price level due to higher demand.

-If the Fed Increases the Quantity of Money and Lowers