Which of the following quotations correctly describes the impact of monetary policy on the economy?
A)"House sales are down lots, due to the higher money growth."
B)"The extra money pumped into the economy by the central bank is creating more exports."
C)"The tightening of money growth is helping sell goods abroad."
D)"Businesses are investing more, now that monetary policy has become less expansionary."
E)"The extra money pumped into the economy by the central bank is creating fewer jobs."

Question

Quizplus · Accepted Answer

Monetary policy can influence exports by affecting exchange rates and economic activity. An increase in money supply can lead to a depreciation of the currency, making exports cheaper and more competitive abroad.

Which of the Following Quotations Correctly Describes the Impact of Monetary