Expansionary Monetary Policy Results in a Shift of the Aggregate

Multiple Choice

Expansionary monetary policy results in a shift of the aggregate demand curve to the right. The effect of the monetary policy on the aggregate demand is:

A) direct from the money supply to the aggregate demand.
B) indirect through the short-term and long-term interest rates.
C) direct from the money supply to the aggregate supply.
D) indirect through the government expenditures.