The Intended Effect of an Expansionary Monetary Policy Is That

Multiple Choice

The intended effect of an expansionary monetary policy is that aggregate demand:

A) increases,raising real GDP growth only in the long run.
B) increases,raising inflation and real GDP growth in both the short run and the long run.
C) increases,raising real GDP growth in the short run,but only inflation rises in the long run.
D) remains unchanged while the economy's long-run potential growth rate increases.