The steps in the transmission of monetary policy are

A) Congress increases government expenditures on goods and services, leading to an increase in aggregate demand.
B) Congress increases the money supply, which lowers the interest rate, and leads to an increase in aggregate demand.
C) the Federal Reserve increases government expenditures on goods and services, leading to an increase in aggregate demand.
D) the Federal Reserve lowers the federal funds rate, which lowers the real interest rate and leads to an increase in aggregate demand.
E) Congress increases the budget deficit, which increases the money supply, which increases aggregate supply.

D