Assume a banking system with limited reserves. During a recession, an increase in the money supply would result in which of the following?


Responses

A decrease in inflationary expectations, an increase in interest rates, and a decrease in interest-sensitive spending


A decrease in inflationary expectations, an increase in interest rates, and a decrease in interest-sensitive spending

A decrease in interest rates, an increase in interest-sensitive spending, and an increase in real output


A decrease in interest rates, an increase in interest-sensitive spending, and an increase in real output

A decrease in stock prices, a decrease in financial wealth, and a decrease in consumption


A decrease in stock prices, a decrease in financial wealth, and a decrease in consumption

An increase in interest rates, appreciation of the domestic currency, and a decrease in net exports


An increase in interest rates, appreciation of the domestic currency, and a decrease in net exports

​An increase in stock prices, a decrease in consumer confidence, and a decrease in household spending