Business

Gabriel Kerr

20 May, 18:41

Place in order the events that occur in the short run when the Federal Reserve enacts expansionary monetary policy.

a. The increased borrowing leads to increased investment and purchasing of goods and services.

b. The aggregate demand curve shifts rightward.

c. Market equilibrium shifts toward more money being lent at a lower interest rate.

d. As the Fed buys bonds, new money enters the loanable funds market.

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