Interest rate decrease by the federal reserve

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Which of the following statements correctly reflects the developments in the U.S. automobile industry following an interest rate decrease by the Federal Reserve?

a. Both equilibrium output and price will increase. b. Both equilibrium output and price will decrease. c. equilibrium output will increase and price may decrease. d. equilibrium output will decreasecand price may increase. e. none of the above statements is correct.

Reference no: EM131193889

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