As a Result of Expansionary Monetary Policy

question 55

Multiple Choice

As a result of expansionary monetary policy,

• A)both aggregate expenditure and aggregate demand increase
• B)both aggregate expenditure and aggregate demand decrease
• C)aggregate expenditure increases and aggregate demand decreases
• D)aggregate expenditure decreases and aggregate demand increases
• E)aggregate expenditure remains unchanged; aggregate demand increases

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Definitions:

Income Tax Surcharge

An additional charge on the basic income tax liability, often applied to higher income brackets to collect additional revenue from them.

Federal Deficit

The amount by which the government's total budget outlays exceed its total receipts for a fiscal year.

Discretionary Fiscal Policy

Government policy involving deliberate manipulation of government spending and taxes to influence the economy based on current economic conditions.

Aggregate Demand

Aggregate demand is the total demand for all goods and services within an economy at a given overall price level and in a given time period.