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Which of the following reflects the order of operations

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Which of the following reflects the order of operations when the Fed lowers the discount rate?

  • money supply increases, interest rates decrease, investment spending increases, AS shifts right.
  • money supply decreases, interest rates increase, investment spending decreases, AD shifts left.
  • money supply increases, interest rates increase, investment spending increases, AD shifts right.
  • money supply decreases, interest rates increase, investment spending decreases, AS shifts left.
  • money supply increases, interest rates decrease, investment spending increases, AD shifts right

Reference no: EM132456370

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