The Best Description of the Cause-And-Effect Chain of an Expansionary

question 49

Multiple Choice

The best description of the cause-and-effect chain of an expansionary monetary policy is that it will

• A)lower the interest rate,raise investment spending,and increase real GDP.
• B)raise the interest rate,decrease investment spending,and increase real GDP.
• C)raise the interest rate,increase investment spending,and increase real GDP.
• D)lower the interest rate,increase investment spending,and reduce real GDP.
• E)raise the interest rate,decrease investment spending,and decrease real GDP.

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