The two types of monetary policy are
A) monetary and fiscal.
B) expansionary and contractionary.
C) countercyclical and pro-cyclical.
D) positive and negative.
E) pro and con.

Question

Quizplus · Accepted Answer

The two types of monetary policy are expansionary and contractionary. Expansionary monetary policy involves increasing the money supply and lowering interest rates in order to stimulate economic growth. Contractionary monetary policy involves decreasing the money supply and raising interest rates in order to combat inflation.

The Two Types of Monetary Policy Are