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Bezzdna [24]
3 years ago
13

12. Expansionary monetary policy will tend to have what effects?

History
1 answer:
Serggg [28]3 years ago
5 0

Answer:

<h2>In this instance,the correct answer would be option D. or  Increase in money supply, lower Interest Rates, and increase Aggregate Demand.</h2>

Explanation:

  • An expansionary monetary policy commonly signifies an increase in overall money supply in the economy by the central bank.An increase in money supply in the economy induces a decrease in the interest rate or the cost of financial borrowing in the economy.
  • Now,a reduction in the interest rate or cost of financial borrowing increases the money demand among investors and businesses thereby expanding the aggregate investment level in the economy which is an important component or determinant of the Aggregate Demand in the economy.
  • Due to an increase in the aggregate private investment level in the economy,the Aggregate Demand increases which can eventually lead to a rise in the GDP or overall output level in the economy.
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Explanation: he Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by: Qatar (1961) – terminated its membership in January 2019; Indonesia (1962) – suspended its membership in January 2009, reactivated it in January 2016, but decided to suspend it again in November 2016;

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I hope this helps, L.E.

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