A change in monetary policy affects
A)consumption expenditure, productivity, and net exports.
B)consumption expenditure, government expenditures on goods and services, and net exports.
C)consumption expenditure, investment, and net exports.
D)government expenditures on goods and services because it affects the government's budget balance.
E)investment, government expenditures on goods and services, and net exports.

Question

Quizplus · Accepted Answer

Monetary policy primarily affects consumption expenditure, investment, and net exports by influencing interest rates, which in turn affect borrowing costs, consumer spending, and the exchange rate.

A Change in Monetary Policy Affects