of the following sequence of events follows an expansionary monetary         policy?   interest rate(up)----consumption & investment(up)----Aggregate demand(down)----real GDP(up) interest rate(down)---consumption & investment(down)----Aggregate demand(up)----real GDP(down) interest rate(up)----consumption & investment(down)----Aggregate demand(down)----real GDP(down)

Economics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN:9781305506725
Author:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher:James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Chapter15: Macroeconomic Policy, Economic Stability, And The Federal Debt
Section: Chapter Questions
Problem 11CQ
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28.

Which of the following sequence of events follows an expansionary monetary  

      policy?

 

  1. interest rate(up)----consumption & investment(up)----Aggregate

demand(down)----real GDP(up)

  1. interest rate(down)---consumption & investment(down)----Aggregate

demand(up)----real GDP(down)

  1. interest rate(up)----consumption & investment(down)----Aggregate

demand(down)----real GDP(down)

  1. interest rate(down)---consumption & investment(up)-----Aggregate

demand(up)-----real GDP(up)

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