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Macroeconomics

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Expansionary Monetary Policy

MACRO-3BLJYZ

In a simple money market, expansionary monetary policy

A

is aimed at increasing money demand and increasing the rate of interest.

B

should raise interest rates and combat inflation.

C

will increase the money supply and lower interest rates.

D

will reduce money demand and increase money supply with an indeterminate impact on the quantity of money.

E

will lead to higher interest rates and lower bond prices.