If the money supply in the economy is currently at MS2, and the Fed uses open market operations to move the money supply to MS3, what is the overall effect on the economy?

c) Aggregate demand shifted out, causing GDP to rise

Explanation:

If the Fed increases money supply such that it moves from MS2 to MS3, there will be more money in the economy which would reduce the cost of borrowing.

Both people and firms will therefore borrow more to both consume and invest(both components of Aggregate demand) and this will lead to a rise in Aggregate demand causing it to shift out. The GDP will therefore rise as a result.

being born in poverty would limit the people's chances, opportunities and benefits.

this happen because of several things, such as:

- poor people tend to gain less access to good education and nutrition. this mean that their chance to obtain high paying jobs would also be limited.

- poor people tend to socialize with other poor people while the rich tend to socialize with other rich people. this means that simply throguh their social circle, rich people would have more business opportunities compared to the poor people.

- rich people tend to have more capital in their disposal. this would benefit them in business since it is far easier for them to fund their business operation compared to poor people.

anjan should should report alteast 5000 on the first apyment and 10,000 each year

explanation: