Answer:
The money supply will increase
Interest rates will reduce
Investment will increase
Consumption will increase
The aggregate demand curve will move rightward
Real GDP will increase
The price level will increase
Explanation:
Expansionary monetary policy is a macroeconomic policy that the Federal Reserve uses to stimulate aggregate demand in the economy, by manipulating the cost of money, supply of money and the use of money.
The money supply - Expansionary monetary policy deals with reduction in interest rate and increase in supply of money as well as reduction in required reserve ratio, all these will increase the supplier of money
Interest rates - Expansionary monetary policy is a policy that lowers the interest rate in order to stimulate aggregate demand.
Investment: Increase in aggregate demand will increase investment as a result of expansionary monetary policy
Consumption - There will be increase in consumption
Net Exports - Net export will increase as a result of increase in production and access to finance
The aggregate demand curve - The aggregate demand curve will move rightward
Real GDP - Real GDP will increase as a result of increase in production stimulated by increase in aggregate demand.
The price level - The price level will increase as a result of increase in money supply
