
If the Reserve Bank of Australia pursues expansionary monetary policy, ceteris paribus, aggregate demand will:
A) rise by more than it otherwise would have and the price level will rise by more than it otherwise would have.
B) fall by more than it otherwise would have and the price level will fall by more than it otherwise would have.
C) rise by less than it otherwise would have and the price level will rise by less than it otherwise would have.
D) fall by less than it otherwise would have and the price level will rise by less than it otherwise would have.
Correct Answer:
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