A central bank that desires a (an) ______ of its currency would likely implement a ______ monetary policy.
A) depreciation, expansionary
B) depreciation, neutral
C) appreciation, neutral
D) appreciation, expansionary

Question

Quizplus · Accepted Answer

Expansionary monetary policy, which involves lowering interest rates and increasing the money supply, can lead to a depreciation of the currency because it increases the supply of the currency, potentially reducing its value on the foreign exchange market.

A Central Bank That Desires a (An) ______ of Its