According to this Application, the Fed increased its lending by ...

[fox]

According to this Application, the Fed increased its lending by hundreds of billions of dollars to financial institutions as a response to the ongoing financial crisis.
 
  This increase in loans to financial institutions increased the supply of money in the economy. When the supply of money increases, the money supply curve will
  A) shift to the right, increasing the interest rate. B) shift to the left, increasing the interest rate.
  C) shift to the right, decreasing the interest rate. D) shift to the left, decreasing the interest rate.

Question 2

In the United States, the Federal Reserve pursues an inflation targeting policy of keeping inflation below 2 percent.
 
  Indicate whether the statement is true or false

[Pariscourtney]

Answer to Question 1

C

Answer to Question 2

FALSE