Expansionary monetary policy lowers and increases demand...

Name: expansionary monetary policy lowers and increases demand for investment and consumer borrowing which shifts aggregate demand to the question 31 options 1 inte 65877
Uploaded: 2025-04-09T22:23:27-08:00
Duration: 11 min 56 s
Channel: Jenny Wu
Description: expansionary monetary policy lowers and increases demand for investment and consumer borrowing which shifts aggregate demand to the question 31 options 1 inte 65877

Expansionary monetary policy lowers ______________, and increases demand for investment and consumer borrowing, which shifts aggregate demand to the ________________. Question 31 options: 1) interest rates; right 2) rates of return; left 3) rates of return; right 4) exchange rates; left

Transcript

00:01 Ask you to fill in a blank about the possible impact of higher tax and how does it affect the curve and how does it shift it? so in this case, when you have a higher tax, so this would actually cause the money demand curve to ship to the right.

00:59 So higher tax generally reduced disposable income.

01:04 Now, this may cause people to hold more money because they don't want to spend.

01:11 So leading to an increase in money demand.

01:16 So let's write on a reason high tax and reduce disposable income.

01:30 And people have less money to spend.

01:33 They don't spend.

01:35 Hold more money.

01:45 Increase money demand.

01:50 Well, they need more money.

01:51 So this is why we're putting the, link as first of all the money demand the second rate too a possible impact of the expansionary monetary policy is that it caused what curve to shift to which side so a expansionary monetary policy causes the money supply curve to shift to the right so this means that when the fed increased the money supply, it direct increased available amount of money in economy and shift their money supply to the right.

03:17 Expansionary.

03:26 There's more money circulating, increase available amount of money.

03:48 And obviously, you have more money supply.

03:53 This will shift the money supply curve to the right, increase.

04:16 All right, so this fits fill in the first two blanks.

04:24 Now, the next question, you have contractory policy in this case.

04:32 So the contractory policy aimed to slow down the economy by reducing aggregate demand.

04:39 So from here, you can see that the contractory monetary policy means that it decreased the money supply leading to a higher interest rate.

04:48 So let's put down the first one.

05:01 Contractory, contractionary monetary monetary policy, decrease the money supply leading to a higher interest rate.

05:27 So you're going to say increases.

05:43 And again, this is due to decreases of money supply.

06:01 So you can see this is the opposite of the, expansionary monetary policy where you have more money supply.

06:09 So it shifted to the right now...

Question

Expansionary monetary policy lowers ______________, and increases demand for investment and consumer borrowing, which shifts aggregate demand to the ________________. Question 31 options: 1) interest rates; right 2) rates of return; left 3) rates of return; right 4) exchange rates; left

Please give Ace some feedback

Expansionary monetary policy lowers , and increases demand for investment and consumer borrowing, which shifts aggregate demand to the __. Question 31 options: 1) interest rates; right 2) rates of return; left 3) rates of return; right 4) exchange rates; left