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When the Fed uses expansionary monetary policy, which of the following is true?

a. Consumer spending and autonomous government spending increase while investment spending decreases.

b. Consumer spending, investment spending, and autonomous government spending decrease

c.Interest sensitive consumer spending, investment spending, and autonomous government spending increase

d. Interest sensitive consumer spending, investment spending, and autonomous government spending increase while net exports decreases due to the change in the value of the dollar

e. Interest sensitive consumer spending, investment spending, and autonomous government spending decrease while net exports increases due to the change in the price level.

Business Economics, Economics

  • Category:- Business Economics
  • Reference No.:- M91845735

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