If the Fed Pursues Expansionary Monetary Policy Then

question 43

Multiple Choice

If the Fed pursues expansionary monetary policy then

• A)the money supply will decrease,interest rates will rise and GDP will fall.
• B)the money supply will decrease,interest rates will fall and GDP will fall.
• C)the money supply will increase,interest rates will rise and GDP will rise.
• D)the money supply will increase,interest rates will fall and GDP will rise.

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Definitions:

Capital Account

An account on the balance sheet that represents the equity or ownership interest of owners in the business.

Trial Balance

A bookkeeping worksheet in which the balances of all ledgers are compiled into debit and credit columns to ensure a company's bookkeeping system is mathematically correct.

Balance Sheet

A financial record that outlines the value of a company's assets, its liabilities, and the equity belonging to investors, at a particular time.

Financial Statement Items

These are line items or components found in financial statements like the balance sheet, income statement, and cash flow statement, representing financial performance and position.