Question

RBI adopts expansionary monetary policy to correct the problem of inflation. Is this
statement true or false?
OPTIONS
true
false​

Answer 1

Answer:

true

Explanation:

mark as brilient

follow me

Answer 2

Answer:

True

Explanation:

Expansionary monetary policy is when RBI uses its tools to stimulate the economy. Which increases the money supply, lowers interest rates, and increases demand. It boosts economic growth and corrects the problem of inflation. It downgrades the value of the currency and decreases the exchange rate. It is the totally opposite of contractionary monetary policy.

The expansionary monetary policy discourages the contractionary phase of the business cycle. But it is very difficult for policymakers to catch this in time. As a result, we typically see expansionary policy used after a recession has started.

#SPJ2