Question

Which of these are goals of an expansionary policy? Check all that apply. increased available credit decreased available credit increased money supply increased inflation increased interest rates decreased interest rates

Answer 1

Answer:

- increased money supply

- decreased interest rates

Explanation:

The expansionary policies are not the most favorite ones of the economists, as they are used only when the economy seems to be in trouble. In order for this policies to come to action, the economy usually needs to face higher than usual inflation rates. In order to fight the inflation and keep the economy relatively stable, the production and releasing of money into the economy is abnormally high. Other measure that is used is to decrease the interest rates, usually the short term ones being the most affected, as in that manner the banks will be able to keep much more money in them and balance things in the economy.

Answer 2

Answer:

increased available credit

increased money supply

decreased interest rates

Explanation:

I just took the test.