Everything else held constant,an autonomous easing of monetary policy will cause
A)aggregate demand to increase.
B)aggregate demand to decrease.
C)the quantity of aggregate demand to increase.
D)the quantity of aggregate demand to decrease.

Question

Quizplus · Accepted Answer

An autonomous easing of monetary policy will lead to a decrease in interest rates, making it cheaper to borrow money. This will lead to an increase in consumption and investment spending, which will increase aggregate demand.

Everything Else Held Constant,an Autonomous Easing of Monetary Policy Will