Which of the following would coincide with an easy money policy?
A) Decreasing spending.
B) Increasing interest rates.
C) Increasing excess reserves.
D) Decreasing the money supply.

Question

Quizplus · Accepted Answer

An easy money policy is characterized by efforts to increase the money supply and lower interest rates to stimulate economic activity. Increasing excess reserves in banks is a method to achieve this, as it enables banks to lend more, thus increasing the money supply and potentially lowering interest rates.

Which of the Following Would Coincide with an Easy Money