If the Federal Reserve decides to increase the money supply, the interest rate will _______ and the AD curve _________.

If the Federal Reserve decides to increase the money supply, the interest rate will _______ and the AD curve _________.


If the Federal Reserve decides to increase the money supply, the interest rate will _______ and the AD curve _________.


A. rise; shift to the right


B. fall; shift to the right

C. rise; shift to the left

D. fall; shift to the left


Answer Key: B