Which of the Following Best Describes the Cause-Effect Chain of an Expansionary

question 222

Multiple Choice

Which of the following best describes the cause-effect chain of an expansionary monetary policy?

• A)A decrease in the money supply will lower the interest rate, increase investment spending, and increase GDP.
• B)A decrease in the money supply will raise the interest rate, decrease investment spending, and decrease GDP.
• C)An increase in the money supply will raise the interest rate, decrease investment spending, and decrease GDP.
• D)An increase in the money supply will lower the interest rate, increase investment spending, and increase GDP.

---

Definitions:

Coworkers

Individuals who work together in the same organization or workplace.

Industrial Revolution

A period of major industrialization from the 18th to the 19th century that radically transformed society with technological advancements, changing the manual labor system into machine-based manufacturing.

Great Depression

A severe worldwide economic downturn that took place during the 1930s, starting in the United States.

Foster Children

Minors who have been placed under the care of a state-certified caregiver, due to their original family's inability to provide adequate care.