Expansionary Monetary Policy Results in a Shift of the Aggregate

question 77

Multiple Choice

Expansionary monetary policy results in a shift of the aggregate demand curve to the right. The effect of the monetary policy on the aggregate demand is:

• A)direct from the money supply to the aggregate demand.
• B)indirect through the short-term and long-term interest rates.
• C)direct from the money supply to the aggregate supply.
• D)indirect through the government expenditures.

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