An autonomous easing of monetary policy
A)causes an upward movement along the monetary policy curve.
B)causes a downward movement along the monetary policy curve.
C)shifts the monetary policy curve upward.
D)shifts the monetary policy curve downward.

Question

Quizplus · Accepted Answer

An autonomous easing of monetary policy, such as lowering interest rates or increasing the money supply, shifts the monetary policy curve downward. This is because the policy makes monetary conditions more accommodative, effectively lowering the interest rate at any given level of income or inflation, which is represented by a downward shift in the curve.

An Autonomous Easing of Monetary Policy