# The chain of events that results from an expansionary monetary policy is ? with Answer - Economics Mcqs | TestPrep

> Solved MCQ: The chain of events that results from an expansionary monetary policy is ? Correct Answer: B. money supply increases the interest rate decrease planned investment increases aggregate output increases and money demand increase. Verified answer explanation for FPSC, PPSC, MDCAT, NTS, and CSS competitive exam preparation.

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# The chain of events that results from an expansionary monetary policy is ?

Direct Answer & Quick Reference

The correct option is **B. money supply increases the interest rate decrease planned investment increases aggregate output increases and money demand increase**.

A. aggregate output increases the demand for money increase the interest rate increase planned investment

B. money supply increases the interest rate decrease planned investment increases aggregate output increases and money demand increase **(Correct Answer)**

C. money supply increases the interest rate increase planned investment increases aggregate output increases and money demand increases

D. money demand increases the interest rate decreases planned investment increases aggregate output increases and money demand increases

✨ Explain with AI

Verified Key: B. money supply increases the interest rate decrease planned investment increases aggregate output increases and money demand increase
Solved by 3,455+ students

Verified against official examination board answer keys and standard curriculum textbooks.

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*Source: https://test-prep.blog/mcq/the-chain-of-events-that-results-from-an-expansionary-monetary-policy-is-de2e500f-3b71-48f0-9abf-ac118c42c626*
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