Which of the following is an example of expansionary monetary policy?
A)Open market purchases of bonds
B)A decrease in government spending
C)A decrease in taxes
D)An increase in interest rates

Question

Quizplus · Accepted Answer

Open market purchases of bonds by the central bank increase the money supply, which is an expansionary monetary policy. Decrease in government spending (B) and increase in interest rates (D) are contractionary monetary policies. A decrease in taxes (C) is a fiscal policy, not a monetary policy.

Which of the Following Is an Example of Expansionary Monetary