The Chain of Events That Results from an Expansionary Monetary

Multiple Choice

The chain of events that results from an expansionary monetary policy is

A) aggregate output increases, the demand for money increases, the interest rate increases, planned investment decreases, output falls.
B) money supply increases, the interest rate increases, planned investment increases, aggregate output increases, and money demand increases.
C) money demand increases, the interest rate decreases, planned investment increases, aggregate output increases, and money demand increases.
D) money supply increases, the interest rate decreases, planned investment increases, aggregate output increases, and money demand increases.