Refer to Figure 1. This figure describes what kind of monetary Policy? this depi

Question

Refer to Figure 1. This figure describes what kind of monetary Policy? this depicts contractionary monetary policy, because the interest rate has been increased from 7 to 14. which will increase investment this depicts expansionary' monetary policy, because the interest rate has been decrease from 14 to 7. which will increase investment. this depicts contractionary monetary policy, because the federal reserve has increased the money supply, which will decrease investment he aggregate demand curve shows a relationship between and al quantity of output. positive; the interest rate: demanded negative; the price level: supplied positive; the price level; demanded negative; the price level; demanded

Explanation / Answer

Increased money supply always is an expansionary monetary policy which reduces the interest rates.

AD is a negative relationship between price level and quantity demanded. Because AD is a negatively sloped curve.

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