If the Fed conducts open-market sales,which of the following quantities increase(s)?
A)interest rates,prices,and investment spending
B)interest rates and prices,but not investment spending
C)interest rates and investment,but not prices
D)interest rates,but not investment or prices

Question

Quizplus · Accepted Answer

Open-market sales by the Fed decrease the money supply, leading to higher interest rates. Higher interest rates typically reduce investment spending and can also lead to lower prices.

If the Fed Conducts Open-Market Sales,which of the Following Quantities