Which of the following will occur when the central bank pursues expansionary monetary policy?
A) a leftward shift in the money demand curve and a leftward shift in the money supply curve
B) a rightward shift in the money demand curve and a leftward shift in the money supply curve.
C) a leftward shift in the money demand curve and a rightward shift in the money supply curve.
D) a rightward shift in the money demand curve and a rightward shift in the money supply curve.
E) none of the above
Correct Answer:
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