Expansionary Monetary Policy Involves Actions That _______ the Money Supply

question 115

Multiple Choice

Expansionary monetary policy involves actions that _______ the money supply in order to _______ aggregate demand.

• A) decrease; decrease
• B) increase; decrease
• C) decrease; increase
• D) increase; increase

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Definitions:

Inductive Reactance

The resistance offered by an inductor to alternating current, which varies with the frequency of the current and the inductance, also measured in ohms.

Power Factor

A dimensionless number between 0 and 1 that represents the ratio of the real power flowing to the load to the apparent power in the circuit.

True Power

The portion of power, measured in watts (W), that performs real work in a circuit, as opposed to apparent power which also includes reactive power.

Apparent Power

The total power in an AC circuit, combining both active (real) and reactive power, measured in volt-amperes (VA).