Anonymous
Anonymous asked in Social ScienceEconomics · 9 years ago

Expansionary monetary policy will have what effect on the components of aggregate demand?

a. Consumption, investment, and net exports will rise.

b. Consumption and investment will rise, but net exports will fall.

c. Consumption will rise, but investment and net exports will fall.

d. Consumption will fall, but investment and net exports will rise

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  • 9 years ago
    Favorite Answer

    a

    Expansionary monetary policy puts downward pressure on the currency; this stimulates exports.

    " " decreases interest rates throughout the economy; this stimulates consumption and especially investment, as access to credit and capital becomes considerably cheaper.

  • 4 years ago

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