Expansionary monetary policy _____ consumption, investment, and net exports; _____ aggregate expenditures; and _____ aggregate demand.
A)increases; boosts; raises
B)decreases; boosts; raises
C)increases; lowers; lowers
D)decreases; lowers; lowers

Question

Quizplus · Accepted Answer

Expansionary monetary policy involves the central bank increasing the money supply and decreasing interest rates to stimulate economic growth. This leads to an increase in consumption, investment, and net exports which boosts aggregate expenditures and ultimately raises aggregate demand.

Expansionary Monetary Policy _____ Consumption, Investment, and Net Exports; _____

Expansionary Monetary Policy _ Consumption, Investment, and Net Exports; _