What sequence of events follows an expansionary monetary policy?

1. A Option A: Money demand increases, the interest rate decreases, planned investment increases, aggregate output increases and money demand increases
2. B Option B: Aggregate output increases, the demand for money increases, the interest rate increases, planned investment increases
3. C Option C: Money supply increases, the interest rate decreases, planned investment increases, aggregate output increases and money demand increases
4. D Option D: Money supply increases, the interest rate increases, planned investment increases, aggregate output increases and money demand increases

Answer checked 11 October 2026 · How we write and check questions