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

Question

Quizplus · Accepted Answer

An autonomous easing of monetary policy involves the central bank increasing the money supply and lowering interest rates. This makes it cheaper for consumers and businesses to borrow and spend money, leading to an increase in consumption and investment spending. As a result, aggregate demand (the total demand for goods and services in the economy) is likely to increase.

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