Which of the Following Is a Reason Why Monetary Policy

question 67

Multiple Choice

Which of the following is a reason why monetary policy can be effectively used to stimulate aggregate demand in the short run?

• A) Monetary policy stimulates aggregate demand by working through the positive relationship between the price level and the quantity of investment demanded.
• B) Monetary policy stimulates aggregate demand by working through the negative relationship between the interest rates and the quantity of investment demanded.
• C) Monetary policy stimulates aggregate demand by working through the positive relationship between the interest rates and the general price level.
• D) Monetary policy stimulates aggregate demand by working through the positive relationship between the interest rates and the quantity of investment demanded.

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Definitions:

Telling Style

A leadership approach characterized by explicitly instructing subordinates on what to do and how to do it without seeking their input.

Contingency Approaches

Management theories suggesting that the best way to deal with certain situations is dependent on the specific circumstances.

Leadership Style

Refers to the manner and approach of providing direction, implementing plans, and motivating people within an organization or team.

Particular Leadership Style

Refers to a distinct approach or technique adopted by a leader to motivate, guide, and manage teams.