Which of the Following Is NOT a Result of Monetary

question 43

Multiple Choice

Which of the following is NOT a result of monetary policy?

• A)aggregate demand is affected, leading to a change in nominal GDP
• B)the level of potential GDP will change
• C)spending on investment and durable consumption goods is affected
• D)the rates of unemployment and inflation are affected in the short run
• E)real interest rates will remain unaffected in the long run

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Definitions:

Economic Aid

Financial assistance given by one country to another or to an NGO to support economic development and welfare objectives.

Grants

Financial support provided by a government or organization for a specific purpose.

Loans

A sum of money that is borrowed and is expected to be paid back with interest.

Democratic Allies

Nations or groups that share and support democratic values and principles, often working together on international issues.