Suppose the U.S. economy finds itself in a recession after a recent financial crisis and series of unfortunate international events. If the Federal Reserve wants to stabilize the economy, what should it do?
A: Decrease the money supply to increase interest rates and shift Aggregate Demand to the left.
B: Decrease the money supply to increase interest rates and shift Aggregate Demand to the right
C: Increase the money supply to increase interest rates and shift Aggregate Demand to the right.
D: Decrease taxes and decrease government spending.