When the Fed decreases the money supply the equilibrium level of income changes. Which answer below list the correct reaction for: interest rate (i) and its effect on Investment (I), the impact on AD, Price and real GDP (y)
a. (i) - goes down I - goes down AD - moves inward P - falls Y - decreases
b. (i) - goes up I - goes up AD - moves inward P - falls Y - decreases
c. (i) - goes up I - goes down AD - moves outward P - falls Y - decreases
d. (i) - goes up I - goes down AD - moves inward P - falls Y - increases
e. (i) - goes up I - goes down AD - moves inward P - falls Y - decreases