What are the effects of the Federal Reserve instituting an easy money policy?

Question

Effects on A:Availability of Credit

B: Interest Rates

C. Investment spending

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Answer 1

A: Will lead to more availability of credits (through cheaper interest rates)

B: Interest rates will fall (because money supply will increase with unchanged demand for money)

C: Investment spending will increase because more money are available for cheaper (lower) interest rates thus making more projects profitable.

But in the long-run money are neutral for real economy.

Answer 2

A, but there should be a answer D which is it causes inflation.

Answer 3

Giving away the countries money to irresponsible bankers .