If the Fed Pursues Expansionary Monetary Policy

question 45

Multiple Choice

If the Fed pursues expansionary monetary policy

• A)aggregate demand will rise,and the price level will rise.
• B)aggregate demand will fall,and the price level will fall.
• C)aggregate demand will rise,and the price level will fall.
• D)aggregate demand will fall,and the price level will rise.

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Definitions:

Innovation

The introduction of something new, such as an idea, method, or device, that is designed to improve processes, products, or services.

Wide Imitation

The extensive replication of a product, service, or innovation by multiple competitors or industry participants, often signalling the success or desirability of the original.

Creative Destruction

A process through economic innovation in which older models or structures are destroyed to make way for new advancements.

Diffusion

The process by which a technological innovation, cultural trend, or new idea spreads through a population or society.