Which statement is true regarding monetary and fiscal policy? Expansionary fiscal policy lowers interest rates and encourages borrowing. Expansionary monetary policy makes AD shift to the left. Monetary and fiscal policy both alter AD. At high unemployment, expansionary policy will decrease economic growth. Question 15 Mark this question In the 1980s, the Chinese government set the yuan to always be artificially lower than the dollar, which had a number of effects. Which effect happened first? China established a trade surplus. The Chinese economy grew stronger. More Americans demanded yuan than Chinese demanded dollars. The Chinese government financed this imbalance by printing more money