If the central bank announces that it is going to increase the money supply by 6 per cent this year,they are following:

Question

Quizplus · Accepted Answer

Increasing the money supply is a key aspect of the monetarist approach, which focuses on managing the money supply to achieve desired economic outcomes. This is different from a demand-based approach, which would focus on stimulating consumer spending, or a discretionary fiscal policy, which involves using government spending and taxation to influence the economy.

If the Central Bank Announces That It Is Going to Increase