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

Question

Quizplus · Accepted Answer

The correct quotation that describes the impact of monetary policy on the economy is "The extra money pumped into the economy by the central bank is creating more jobs." This is because when the central bank increases the supply of money, it lowers interest rates which makes it cheaper for businesses to borrow money to invest in their operations, leading to more job creation.

Which of the Following Quotations Correctly Describes the Impact of Monetary