Effect sequence in response to expansionary monetary policy

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Identify the correct cause-and-effect sequence in response to an expansionary monetary policy move by the Fed.

(put in order of 1,2,3,4,5)

some inflation and/or real GDP growth

business investment spending increases

the interest rate falls

the deposit expansion process increases the money supply

increase in excess reserves in the commercial banking system

Reference no: EM13834856

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