If the Fed lowers the federal funds rate, then
A. investment and consumption expenditure decrease.
B. the price of the dollar rises on the foreign exchange market and so net exports decrease.
C. a multiplier process that affects aggregate demand occurs.
D. All of the above answers are correct.
Answer:C
If the Fed lowers the federal funds rate, then
A. investment and consumption expenditure decrease. B. the price of the dollar rises on the foreign exchange market and so net exports decrease. C. a multiplier process that affects aggregate demand occurs. D. All of the above answers are correct.