Consider this frugal governed closed economy with a money market.  Note there are no taxes in this economy. C = 100 + 0.3 Y I^d = 1500 − 1000 r G = 600 M^D = 500 − 200 r M^S = 480 The investment multiplier is 1.43.  And the level of investment is currently $1,400.  Assume that the central bank engages in open market operations which increase aggregate output/income (Y) by $100 . What is the value of the money supply after the Fed's policy is implemented? a)$475 b) $574 c) $494

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