Which of the following statements describes the impact of the monetary policy on the Canadian economy?

Question

Which of the following statements describes the impact of the monetary policy on the Canadian economy?

A. Output increases and the price level decreases.

B. Output decreases and the price level increases.

C. Output decreases and the price level decreases.

D. Output increases and the price level increases.

Answer 1

D. Output increases and the price level increases.

If Canadian gov pursues expansionary monetary policy (easy money).