Everything Else Held Constant,expansionary Monetary Policies Will Cause ________

question 25

Multiple Choice

Everything else held constant,expansionary monetary policies will cause ________.

• A)the quantity of aggregate demand to increase
• B)the quantity of aggregate demand to decrease
• C)aggregate demand to decrease
• D)aggregate demand to increase

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Definitions:

Import Quota

A government-imposed limit on the quantity or value of goods that can be imported into a country.

Tariffs

are taxes imposed by a government on imported goods, designed to protect domestic industries and to generate revenue.

Government Revenue

The total income received by the government from taxes and non-tax sources used to fund public spending.

Smoot-Hawley Tariff

A U.S. law enacted in 1930, which raised tariffs on thousands of imported goods, contributing to the severity of the Great Depression by stifling international trade.