Which tool results in an immediate and major impact on the money supply, but is rarely used by the Fed because it affects the money supply in such a significant way?

After a temporary beneficial supply shock hits the economy, general equilibrium is restored by

A) a shift down and to the left of the IS curve. B) a shift to the left of the FE line. C) a shift up and to the left of the LM curve. D) a shift down and to the right of the LM curve.

In the ISLM framework, a rising price level causes

A) the equilibrium interest rate to rise. B) the equilibrium level of income to fall. C) desired saving to rise. D) the LM curve to shift to the right.