1.How will an expansionary monetary policy most likely change aggregate demand,
ID: 2441684 • Letter: 1
Question
1.How will an expansionary monetary policy most likely change aggregate demand, output, and price level?Aggregate Demand / Output / Price Level Increase / Increase / Decrease Increase / Increase / Increase Decrease / Decrease / Decrease Decrease / Increase / Decrease Decrease / Increase / Increase 2.A leftward shift of short-run aggregate supply will result in lower unemployment. lower inflation. higher inflation. stagflation. a smaller recession. 3. If the Federal Reserve purchases securities, then consumer spending will increase and AD will shift right. consumer spending will decrease and AD will shift left. government spending will increase and AD will shift right. investment spending will increase and AD will shift right. investment spending will decrease and AD will shift left. 1.How will an expansionary monetary policy most likely change aggregate demand, output, and price level?
Aggregate Demand / Output / Price Level Increase / Increase / Decrease Increase / Increase / Increase Decrease / Decrease / Decrease Decrease / Increase / Decrease Decrease / Increase / Increase
Explanation / Answer
1. An expansionery monetary policy will increase all. The correct answer is B.
2. The correct answer is D.
3. As securities are purchased money supply will increase. This will causes interest rates to fall and so investment rises. The correct answer is D.
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