Refer to the above graph. If the Federal Reserve wants to lower the interest rate from 4 percent to 1 percent, how much must it increase the money supply?
A) $100 billion.
B) $200 billion.
C) $150 billion.
D) $250 billion.

Question

Refer to the above graph. If the Federal Reserve wants to lower the interest rate from 4 percent to 1 percent, how much must it increase the money supply?
A) $100 billion. 
B) $200 billion. 
C) $150 billion. 
D) $250 billion.

Quizplus · Accepted Answer

The Answer of  Refer to the above graph. If the Federal Reserve wants to lower the interest rate from 4 percent to 1 percent, how much must it increase the money supply?
A) $100 billion. 
B) $200 billion. 
C) $150 billion. 
D) $250 billion.

Refer to the Above Graph