Expansionary monetary policy is a(n)________ in interest rates with the intention of reducing a(n)________ gap.
A) reduction;expansionary
B) reduction;recessionary
C) reduction;inflationary
D) increase;expansionary
E) increase;recessionary

Question

Quizplus · Accepted Answer

Expansionary monetary policy involves reducing interest rates to stimulate economic activity and reduce a recessionary gap, which occurs when an economy is operating below its potential output.

Expansionary Monetary Policy Is A(n)________ in Interest Rates with the Intention