The goal of expansionary monetary policy is to:
A) reduce interest rates to stimulate the economy.
B) increase interest rates to stimulate the economy.
C) reduce interest rates to slow down the economy.
D) increase interest rates to slow down the economy.

Question

Quizplus · Accepted Answer

The goal of expansionary monetary policy is to increase the money supply, which in turn reduces interest rates. Lower interest rates stimulate borrowing and spending, which encourages economic growth.

The Goal of Expansionary Monetary Policy Is To