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Question $83$ of $90$

When the Fed implements expansionary monetary policy which one of the following series of events will likely occur? Interest rates will decrease, stock prices will decrease, bank deposits will increase, bank loans will increase and the aggregate demand curve will shift th the right.

Interest rates will decrease, stock prices will increase, bank deposits will increase, bank loans will increase and the aggregate demand curve will shift th the right.

Interest rates will decrease, stock prices will increase, bank deposits will increase, bank loans will decrease and the aggregate demand curve will shift th the right.

Interest rates will increase, stock prices will increase, bank deposits will increase, bank loans will increase and the aggregate demand curve will shift th the right.

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