Changes in _____________, by changing interest rates at any output level, can shift the
________________ function.
A) monetary policy, aggregate demand
B) monetary policy, export
C) fiscal policy, tax
D) fiscal policy, potential output

Question

Quizplus · Accepted Answer

Monetary policy, through changes in interest rates, can influence the overall demand in the economy, thereby shifting the aggregate demand function.

Changes in _____________, by Changing Interest Rates at Any Output