Which of the following would come from expansionary monetary policy?Multiple choice question.An increase in the interest ratesAn increase in the money supplyAn increase in taxesAn increase in government spending
Question
Which of the following would come from expansionary monetary policy?Multiple choice question.An increase in the interest ratesAn increase in the money supplyAn increase in taxesAn increase in government spending
Solution
The answer is "An increase in the money supply".
Expansionary monetary policy is a form of economic policy that involves increasing the money supply in order to stimulate economic growth. Typically, this involves lowering interest rates, which encourages businesses and individuals to borrow and spend more. This in turn can lead to an increase in economic activity.
So, out of the options provided, "An increase in the money supply" would be a result of expansionary monetary policy. The other options, such as an increase in interest rates or taxes, or an increase in government spending, are not typically associated with this type of policy.
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