Which statement correctly describes how monetary policy affects the economy?
A) House sales are down, due to increases in the money supply.
B) The extra money pumped into the economy by the central bank is decreasing exports.
C) The decreased supply of money is helping sell exports abroad.
D) Businesses are investing more, now that monetary policy has attacked the inflationary gap.
E) The extra money pumped into the economy by the central bank is creating more jobs.
Correct Answer:
Verified
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