Policies expanding the money supply and stimulating growth are beneficial for all circumstances.

Question

Quizplus · Accepted Answer

Policies aimed at expanding the money supply and stimulating growth can be beneficial in certain circumstances, such as during a recession or when the economy is in a liquidity trap. However, if implemented inappropriately or without considering the current economic situation, these policies can lead to inflation and other negative consequences. Therefore, the statement that such policies are beneficial for all circumstances is false.

Policies Expanding the Money Supply and Stimulating Growth Are Beneficial