Question

What are the goals when a government uses expansionary monetary policy? Check all that apply.What are the goals when a government uses expansionary monetary policy? Check all that apply.1) increasing its money supply to boost the economy2) decreasing its money supply to slow the economy3) increasing its money supply to speed business expansion4) decreasing its money supply to curb business expansion5) decreasing its interest rates to increase investment spending

Answer 1

The correct answers to this question are the options 1, 3, and 5.

An expansionary monetary policy is a policy of a central bank in which the total supply of money is increased more rapidly than the usual in the economy. The money supply is increased and the interest rates are decreased so that the aggregate demand is increased and helps the businesses in its expansion. It also helps in combating unemployment. Also, the GDP increases which is indicated as a positive sign of growth.

Answer 2

Answer: 1,3,5

Explanation: just took the test