The problem associated with too much expansionary monetary policy is:
A) additional inflation.
B) additional unemployment.
C) higher interest rates.
D) reduced economic growth.

Question

Quizplus · Accepted Answer

Too much expansionary monetary policy can lead to an increase in the money supply which can cause inflationary pressures in the economy as demand for goods and services increases. This can lead to a decrease in the purchasing power of consumers and cause prices to rise, leading to an increase in the cost of living.

The Problem Associated with Too Much Expansionary Monetary Policy Is