If the central bank of Techland pursues an expansionary monetary policy,________.
A) the interest rate in Techland will rise
B) the demand for labor in Techland will increase
C) the labor supply in Techland will fall
D) the price level in Techland will fall

Question

Quizplus · Accepted Answer

An expansionary monetary policy involves increasing the money supply and lowering interest rates, which can lead to an increase in demand for goods and services, and consequently an increase in demand for labor. Therefore, the most likely outcome of an expansionary monetary policy in Techland would be an increase in the demand for labor. 
None of the other options mentioned are likely outcomes of an expansionary monetary policy.

If the Central Bank of Techland Pursues an Expansionary Monetary