Expansionary monetary policy does NOT increase:
A) aggregate demand.
B) GDP and the price level.
C) consumption spending.
D) interest rates.

Question

Quizplus · Accepted Answer

Expansionary monetary policy aims to lower interest rates, making borrowing cheaper and encouraging spending and investment. Therefore, it will not increase interest rates. However, it will increase aggregate demand, GDP, the price level, and consumption spending.

Expansionary Monetary Policy Does NOT Increase