Expansionary monetary policy _____ the money supply, _____ interest rates, and _____ consumption and investment spending.

Question

Quizplus · Accepted Answer

Expansionary monetary policy aims to increase the money supply, which leads to a decrease in interest rates. The lower interest rates then encourage consumption and investment spending, which in turn stimulates economic growth. Therefore, the correct option is C, which indicates an increase in the money supply, a decrease in interest rates, and an increase in consumption and investment spending.

Expansionary Monetary Policy _____ the Money Supply, _____ Interest Rates

Expansionary Monetary Policy _ the Money Supply, _ Interest Rates