Which of the following is an expansionary monetary policy?
A)Increase the money supply to shift the aggregate demand curve rightward.
B)Increase the money supply to shift the aggregate demand curve leftward.
C)Increase the money supply to shift the aggregate supply curve leftward.
D)Decrease the money supply to shift the aggregate demand curve leftward.

Question

Quizplus · Accepted Answer

An expansionary monetary policy involves increasing the money supply, which in turn can lead to lower interest rates and increased spending by consumers and businesses. This shift in spending can shift the aggregate demand curve rightward, which is consistent with choice A.

Which of the Following Is an Expansionary Monetary Policy