Which of the Following Quotations Correctly Describes the Impact of Monetary

question 1

Multiple Choice

Which of the following quotations correctly describes the impact of monetary policy on the economy?

• A)"The extra money pumped into the economy by the central bank is creating less exports."
• B)"House sales are down lots, due to the higher money growth."
• C)"Businesses are investing more, now that monetary policy has become less expansionary."
• D)"The extra money pumped into the economy by the central bank is creating more jobs."
• E)"The tightening of money growth is helping sell goods abroad."

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Definitions:

Retailers

Intermediaries who buy products from manufacturers (or other intermediaries) and sell them to consumers for home and household use rather than for resale or for use in producing other products.

Ultimate Consumers

The end-users or buyers who purchase products or services for personal use and not for manufacturing or resale purposes.