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Which of the following best describes the causeandeffect chain of an expansionary monetary policy?
Multiple Choice
A decrease in the money supply will lower the interest rate, increase investment spending, and increase aggregate demand and GDP
A decrease in the money supply will raise the interest rate, decrease investment spending, and decrease aggregate demand and GDP
An increase in the money supply will raise the interest rate, decrease investment spending, and decrease aggregate demand and GDP
An increase in the money supply will lower the interest rate, increase investment spending, and increase aggregate demand and GDP
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