Which of the following is NOT a reason that monetary policy impacts aggregate demand?
A) the exchange rate and net export effect
B) the excess cash balance effect
C) the budget deficit effect
D) the interest rate effect

Question

Quizplus · Accepted Answer

The budget deficit effect is more directly related to fiscal policy, which involves government spending and taxation decisions, rather than monetary policy, which is concerned with controlling the money supply and interest rates.

Which of the Following Is NOT a Reason That Monetary