If the Fed conducts open-market sales,which of the following three increase: interest rates,prices,investment spending?
A)interest rates, prices, investment spending
B)interest rates and prices, not investment spending
C)interest rates and investment, not prices
D)interest rates, 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 Three