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11 Dec 2019
Which of the following best describes the cause-effect chain of a restrictive monetary policy?
A. A decrease in the money supply will lower the interest rate, increase investment spending, and increase · aggregate demand and GDP.
B A decrease in the money supply will raise the interest rate, decrease investment spending, and decrease aggregate demand and GDP.
C An increase in the money supply will raise the interest rate, decrease investment spending, and decrease aggregate demand and GDP.
D An increase in the money supply will lower the interest rate, decrease investment spending, and increase aggregate demand and GDP.
Which of the following best describes the cause-effect chain of a restrictive monetary policy?
A. A decrease in the money supply will lower the interest rate, increase investment spending, and increase · aggregate demand and GDP.
B A decrease in the money supply will raise the interest rate, decrease investment spending, and decrease aggregate demand and GDP.
C An increase in the money supply will raise the interest rate, decrease investment spending, and decrease aggregate demand and GDP.
D An increase in the money supply will lower the interest rate, decrease investment spending, and increase aggregate demand and GDP.
Casey DurganLv2
27 May 2020
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