Steps in the Transmission of Monetary Policy Are

question 33

Multiple Choice

Steps in the transmission of monetary policy are

• A)the Commonwealth government increases the budget deficit,which increases the money supply,which increases aggregate supply.
• B)the Reserve Bank increases government expenditures on goods and services,leading to an increase in aggregate demand.
• C)the Commonwealth government increases government expenditures on goods and services,leading to an increase in aggregate demand.
• D)the Commonwealth government increases the money supply,which lowers the interest rate,and leads to an increase in aggregate demand.
• E)the Reserve Bank lowers the cash rate,which lowers the real interest rate,and leads to an increase in aggregate demand.

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Definitions:

Subclavian Artery

The subclavian artery is a major artery that supplies blood to the upper limbs, as well as to parts of the brain, neck, and thorax.

Digital Artery

Small arteries supplying blood to the fingers and toes.

Radial Artery

A major artery in the forearm that supplies blood to the lateral aspect of the arm and hand.