Which One of the Following Statements Best Describes the Monetary

question 10

Multiple Choice

Which one of the following statements best describes the monetary transmission mechanism?

• A)An increase in personal consumption leads to an upward shift in the AE curve and thereby increases real GDP.
• B)An increase in government spending causes the AE curve to shift upwards,leading to a higher GDP.
• C)A decrease in imports causes the AE curve to shift upwards,leading to a higher interest rate.
• D)An increase in the money supply leads to a lower interest rate,higher desired investment,an upward shift in the AE curve and a higher GDP.
• E)A decrease in the money supply leads to a lower interest rate,higher desired investment,an upward shift in the AE curve and a higher GDP.

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Definitions:

Environmental Scanning

Systematic monitoring of the major external forces influencing the organization.

External Forecasting

External forecasting involves predicting future trends and the impact of external factors on an organization's operations, including market demand, economic conditions, and technological changes.

Strategic Planning Process

A methodical approach to imagining a preferred future and converting this vision into general goals or objectives along with a series of actions to reach them.

Strategic Intent

A declaration of the course an organization plans on taking to achieve its longer-term goals. It focuses on aligning organizational resources and energies towards a unified goal.