When the fed increases the money supply,

a. the interest rate rises and this stimulates consumption spending.
b. people spend less because they have more money.
c. the interest rate falls and this stimulates investment spending.
d. the interest rate rises and this stimulates investment spending.

Aproject currently generates sales of $14 million, variable costs equal 50% of sales, and fixed costs are $2.8 million. the firm’s tax rate is 40%. assume all sales and expenses are cash items. (a). what are the effects on cash flow, if sales increase from $14 million to $15.4 million? (input the amount as positive value. enter your answer in dollars not in (b) what are the effects on cash flow, if variable costs increase to 60% of sales? (input the amount as positive value. enter your answers in dollars not in millions). cash flow (increase or decrease) by $