Try another version of these questions Suppose the Fed decreases discount rate. As a result of this policy, what will happen to the Aggregate Demand (AD)? Hint Box 1: Select the best answer Suppose the Fed increased required reserve reation. As a result of this policy, what will happen to the Aggregate Demand (AD)? Hint Box 1: Select the best answer Suppose interest rates increase. As a result of this, what will happen to consumption (C) and investment (I)? Hint Box 1: Select the best answer Suppose interest rates decrease. As a result of this, what will happen to consumption (C) and investment (I)? Hint Box 1: Select the best answer Suppose the Fed buys T-bills. As a result of this policy, what will happen to price level and GDP in the short-run? Hint Box 1: Select the best answer Suppose the Fed sell T-bills. As a result of this policy, what will happen to price level and GDP in the short run? Hint Box 1: Select the best answer