Expansionary monetary policy is consistent with tightening monetary policy.

Question

Quizplus · Accepted Answer

Expansionary monetary policy is aimed at stimulating economic growth and is achieved through actions such as lowering interest rates and increasing the money supply. Tightening monetary policy, on the other hand, is aimed at slowing down economic growth and is achieved through actions such as raising interest rates and decreasing the money supply. These two policies are opposite in nature and cannot be consistent with each other.

Expansionary Monetary Policy Is Consistent with Tightening Monetary Policy