Which Statement Correctly Describes How Monetary Policy Affects the Economy

question 187

Multiple Choice

Which statement correctly describes how monetary policy affects the economy?

• A) House sales are down, due to increases in the money supply.
• B) The extra money pumped into the economy by the central bank is decreasing exports.
• C) The decreased supply of money is helping sell exports abroad.
• D) Businesses are investing more, now that monetary policy has attacked the inflationary gap.
• E) The extra money pumped into the economy by the central bank is creating more jobs.