Multiple Choice
The purpose of an expansionary monetary policy is to:
A) reduce investment spending lower AD and eliminate an inflationary gap.
B) shift the aggregate demand curve to the left to increase a recessionary gap.
C) raise interest rates, increase expenditure, increase AD and remove an inflationary gap.
D) lower interest rates, increase expenditure, increase AD and remove a recessionary gap
Correct Answer:
Verified
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