Although the Federal Reserve may increase the monetary base, the larger monetary aggregates (M1 and M2) and thus aggregate demand won't increase very...

Although the Federal Reserve may increase the monetary base, the larger monetary aggregates (M1 and M2) and thus aggregate demand won't increase very much in response if:

Select one:

a. the economy is in recession.

b. banks are slow to lend.

c. the interest rate is too high.

d. the tax rate is too high.