The correct policy to expand the level of economic activity would be to:
A) increase the money supply.
B) decrease the money supply.
C) leave the money supply unchanged.
D) do anything, because there is no relationship between the money supply and economic activity.

Question

Quizplus · Accepted Answer

Increasing the money supply typically lowers interest rates, making borrowing cheaper. This encourages spending and investment, thereby expanding economic activity.

The Correct Policy to Expand the Level of Economic Activity