Which of the following statements best describes the impact of the increase in trade with China and the expans

Question

Which of the following statements best describes the impact of the increase in trade with China and the expansionary monetary policy?

A. The impact of monetary policy will occur at the wrong time. Instead of bringing the economy back to the natural rate of output, the policy is likely to push the economy beyond this rate, causing inflation.

B. The monetary policy will counteract the positive impact of the increased exports on unemployment, leaving the U.S. economy unchanged from May 2010.

C. The Federal Reserve will cancel the impact of the expansionary monetary policy, leaving the impact of increased exports to correct the economy.

D. The monetary policy will shift the long-run aggregate supply curve to the right, causing an increase in the long-run capacity to produce goods and services.

Answer 1

I personally think that answer is A; every other answer revolves around some pretty large outcomes and involvements.