Expansionary monetary policy would most like to affect aggregate demand through A. consumption B. investment C....

Question

Question

Expansionary monetary policy would most like to affect aggregate demand through

A. consumption

B. investment

C. net exports

D. aggregate production function

E. none of the above

business economics

Answer 1

Answer #1

B. investment

(Expansionary monetary policy will increase money supply which will reduce the interest rate. And thus, investment increases which increases AD.)

Answer 2

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