If the Fed conducts open-market purchases which of these there increases in the short run: interest rates,prices,and investment spending?
A)interest rates, prices, and investment spending
B)interest rates and prices, not investment spending
C)prices and investment spending, not interest rates
D)interest rates, not prices nor investment spending

Question

Quizplus · Accepted Answer

Open-market purchases by the Fed increase the money supply, which typically lowers interest rates, leading to higher investment spending and potentially higher prices in the short run.

If the Fed Conducts Open-Market Purchases Which of These There