If the Federal Reserve is taking steps to expand the money supply, lower interest rates, and encourage borrowing and spending, it is pursuing:
A) an easy money policy.
B) a balanced money policy.
C) a tight money policy.
D) a fiscal policy.

Question

Quizplus · Accepted Answer

An easy money policy is characterized by the Federal Reserve taking actions to increase the money supply, lower interest rates, and encourage borrowing and spending to stimulate economic growth.

If the Federal Reserve Is Taking Steps to Expand the Money