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Which of the Following Correctly Explains How Expansionary Monetary Policy

Question 11

Multiple Choice

Which of the following correctly explains how expansionary monetary policy works?

A) G↑ ⇒ C↑ ⇒ Y↑
B) T↑ ⇒ C↑ ⇒ Y↑
C) M↑ ⇒ i↓ ⇒ I↑ ⇒ Y↑
D) M↑ ⇒ i↓ ⇒ I↓ ⇒ Y↑

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