Expansionary monetary policy:

Question

A) increases aggregate demand.

B) increases GDP or the price level.

C) increases consumption spending.

D) does all of the above.

Answer 1

D) does all of the above.

It increases disposable income in short-run, thus "A" is true.

In long-run increase in aggregate demand leads to increase price level but in short-run it rises GDP, thus "B" is true too.

"C" is true because of "A".