Question

Expansionary monetary policy aims to...

a
decrease the money supply, increase interest rates, & limit consumer spending
b
increase the money supply, decrease interest rates, & promote consumer spending
c
decrease the money supply, decrease interest rates, & promote consumer spending
d
increase the money supply, increase interest rates, & limit consumer spending

Answer 1

The correct answer is:

**b** - increase the money supply, decrease interest rates, & promote consumer spending.

Expansionary monetary policy is used to stimulate the economy by making borrowing cheaper and encouraging spending and investment.