Which of the following quotations correctly describes the impact of monetary policy on the economy?
A)"House sales are down lots, due to the higher money growth."
B)"The extra money pumped into the economy by the central bank is creating less exports."
C)"The tightening of money growth is helping sell goods abroad."
D)"Businesses are investing more, now that monetary policy has become less expansionary."
E)"The extra money pumped into the economy by the central bank is creating more jobs."

Question

Quizplus · Accepted Answer

The quotation "The extra money pumped into the economy by the central bank is creating more jobs" correctly describes the impact of monetary policy on the economy. This is because an expansionary monetary policy, which involves injecting more money into the economy, can stimulate job growth by making it cheaper for businesses to borrow funds for investment and expansion.

Which of the Following Quotations Correctly Describes the Impact of Monetary