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Shkiper50 [21]
3 years ago
6

Add my instaa for brainliest sadface.sadlife xD

Business
1 answer:
Papessa [141]3 years ago
4 0

Answer:

i did it

Explanation:

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Control the money supply
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If workers and firms have rational expectations, they understand that ________ monetary policy will raise the inflation rate, so
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<u>expansionary; will be equal to</u>

Explanation:

<em>Remember</em>, monetary policies are basically divided into:

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Indeed, as the name implies, the expansionary monetary policy is meant to in a sense boost up economic growth in terms of reducing interest rates thereby theoretically increasing spending and also leading to an increase in the money supply. When there is an increase in the money supply, this thus leads to an increased inflation rate, which would be expected if workers and firms have rational expectations.

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