Expansionary monetary policy consists of all of the following EXCEPT
A)open market sales.
B)lower interest rates.
C)increased monetary base.
D)increased money supply.

Question

Quizplus · Accepted Answer

Open market sales are a tool of contractionary monetary policy, where the central bank sells government securities to decrease the money supply and increase interest rates. Expansionary monetary policy involves increasing the money supply and lowering interest rates, which can be done through increasing the monetary base and conducting open market purchases (not sales).

Expansionary Monetary Policy Consists of All of the Following EXCEPT