If the Fed pursues expansionary monetary policy A. Aggregate demand will rise in

Question

If the Fed pursues expansionary monetary policy A. Aggregate demand will rise in price level will fall. B. Aggregate demand will fall in the price level will rise. C. Aggregate demand will rise in the price level will rise. D. Aggregate demand will fall in the price level will fall. If the Fed pursues expansionary monetary policy A. Aggregate demand will rise in price level will fall. B. Aggregate demand will fall in the price level will rise. C. Aggregate demand will rise in the price level will rise. D. Aggregate demand will fall in the price level will fall. A. Aggregate demand will rise in price level will fall. B. Aggregate demand will fall in the price level will rise. C. Aggregate demand will rise in the price level will rise. D. Aggregate demand will fall in the price level will fall.

Explanation / Answer

If the Fed pursues expansionary monetary policy aggregate demand will rise in the price level will rise. The correct option is C. The good quality of products leads to increase in its price. This will attract the customers and the demands would tend to increase. The monopoly of the product would increase.

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