Which of the following is a predictable advantage of expansionary monetary policy in a recession?
o It decreases the interest rate, which attracts foreign investment in U. S. financial
assets.
O It decreases aggregate demand so that the price level falls, which increases demand
for the dollar.
It increases investment, which increases aggregate demand and increases
employment.
It keeps interest rates high, which attracts foreign investment.
O It increases aggregate demand, which increases real GDP and increases the
unemloyment rate