Monetary policy affects aggregate demand through changes in:
A) government spending.
B) consumer and investment spending.
C) tax receipts.
D) export demand.

Question

Quizplus · Accepted Answer

Monetary policy primarily affects aggregate demand through changes in consumer and investment spending by altering interest rates and the money supply. Changes in government spending or tax receipts are part of fiscal policy, and changes in export demand are influenced by factors such as exchange rates and global economic conditions.

Monetary Policy Affects Aggregate Demand Through Changes In