What are the goals when a government uses expansionary monetary policy? Check all that apply.

increasing its money supply to boost the economy

decreasing its money supply to slow the economy

increasing its money supply to speed business expansion

decreasing its money supply to curb business expansion

decreasing its interest rates to increase investment spending

Question

Social Studies

Lilian Sanford

8 February, 21:40

What are the goals when a government uses expansionary monetary policy? Check all that apply.

increasing its money supply to boost the economy

decreasing its money supply to slow the economy

increasing its money supply to speed business expansion

decreasing its money supply to curb business expansion

decreasing its interest rates to increase investment spending

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Answers (1)

Know the Answer?

Theodore Mueller · Answer 1

An expansionary monetary policy is used by the government to boost the economy and reduce unemployment. It can be imposed by "increasing its money supply to boost the economy", "increasing its money supply to speed business expansion" and by "decreasing its interest rates to increase investment spending".