Question

The Fed has decided to expand the money supply, leading to lower interest rates. As a partner in a tech start-up, you react to these lower interest rates by deciding to expand your operations and begin marketing your new artificial intelligence prototype. What impacts would this decision have on the macroeconomy

Answer 1

reducing unemployment and raising GDP and increasing the investment part of GDP

Step-by-step explanation:

• This is the expansion monetary policy. Hiring more people results in business expansion, which reduces unemployment. In addition, more goods and services will be available that will increase GDP as a result of trade expansion.
• Finally, as business investment increases, so does the share of investment in GDP.
• correct answer is reducing unemployment and raising GDP and increasing the investment part of GDP