Advanced Placement (AP)

Question 8(multiple choice worth 4 points) if the federal reserve conducts easy money policy to expand the money supply, then a. nominal interest rates will decrease and investment spending will increase. b. nominal interest rates will decrease and investment spending will decrease. c. nominal interest rates will decrease and price level spending will decrease. d. nominal interest rates will increase and price level spending will increase. e. nominal interest rates will increase and investment spending will decrease.

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Question 8(multiple choice worth 4 points) if the federal reserve conducts easy money policy to expa...

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