__________________ is when a central bank acts to increase the money supply in an effort to stimulate the economy.
A) Expansionary monetary policy
B) Expansionary fiscal policy
C) Contractionary monetary policy
D) Contractionary fiscal policy
E) Countercyclical monetary policy

Question

Quizplus · Accepted Answer

Expansionary monetary policy is when a central bank increases the money supply by lowering interest rates or purchasing government securities, in order to stimulate economic growth and increase aggregate demand. This can help to reduce unemployment and encourage investment and consumer spending.

__________________ Is When a Central Bank Acts to Increase the Money