When monetary authorities increase the money supply and push down interest rates,they are pursuing a(n)________ money policy.

Question

Quizplus · Accepted Answer

When monetary authorities increase the money supply and push down interest rates, they are pursuing an easy money policy. This policy is characterized by low-interest rates, increased borrowing, and higher economic growth. The opposite of an easy money policy is a tight money policy characterized by high-interest rates, decreased borrowing, and slower economic growth. Selective, fiscal, and open money policies are not relevant to the context of the question.

When Monetary Authorities Increase the Money Supply and Push Down