The best description of the cause- and- effect chain of an expansionary monetary policy is that it will
A) raise the interest rate, decrease investment spending, and increase real GDP.
B) raise the interest rate, increase investment spending, and increase real GDP.
C) raise the interest rate, decrease investment spending, and decrease real GDP.
D) lower the interest rate, increase investment spending, and reduce real GDP.
E) lower the interest rate, raise investment spending, and increase real GDP.
Correct Answer:
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