Suppose you own a small business and have been thinking about expanding production,
including hiring more workers. Until recently, interest rates at your bank have been too high for
you to obtain a loan. However, the central bank decides to expand the money supply, which
lowers interest rates to a level where you can take out a loan and expand production. Select the
ways in which your actions affect the macroeconomy.
Correct Answer(s)
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rec
The inflation rate goes down.
Investment increases.
Questior
Real GDP increases.
Aggregate demand increases.