QUESTION 27 2 points Save Answer Which one of the following statements best desc

Question

QUESTION 27 2 points Save Answer Which one of the following statements best describes the chain of events that causes expansionary monetary policy to increase GDP? Expansionary monetary policy increases the supply of money, which increases aggregate demand, which increases GDP O Expansionary monetary policy lowers interest rates, which increases investment, which increases aggregate demand, which increases GDP Expansionary monetary policy increases the demand for federal funds, which lowers inflation, which Increases consumer confidence which increases GDP Expansionary monetary policy lowers interest rates, which lowers inflation, which increases consumer confidence, which increases GDP QUESTION 28 2 points Save Answer Which one of the following impacts is LEAST likely to occur as a result of expansionary fiscal policy? An increase in unemployment. An increase in inflation o An increase in govemment debt. o An increase in aggregate demand QUESTION 29 2 points Save Answer Which of the following is NOT an example of a nonbank financial institution? o Hedge Fund O Insurance company Pension Fund Stock Exchange QUESTION 30 2 points Save Answer If the government wants to stimulate the level of economic activity through the use of fiscal policy, then government spending will raise the level of government spending will lower it. economic equilibrium, while O eliminating, increasing O increasing decreasing O maintaining; eliminating O decreasing; increasing

Explanation / Answer

27) Option 2 is correct (expansionary monetary policy lowers interest rates which increases investment)

28) Option 1 is correct (Unemployment decreases as a result of expansionary fiscal policy)

29) Option 4 is correct (Stock exchange in not a NBFC)

30) Option 2 is correct

Increasing government spending would raise the level of economic equilibrium, while decreasing government spending will lower it.

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